Alex Mashinsky to Represent Himself in Court Amid Sentencing Preparations

Alex Mashinsky, the former CEO of Celsius, will represent himself in court as he prepares for sentencing. According to Cointelegraph, Mashinsky's legal team has withdrawn from the case, leaving him to proceed pro se. He was sentenced to 12 years in prison for his involvement in fraud and price manipulation at the crypto lending platform. Roni Cohen-Pavon, Celsius' former chief revenue officer, is set to be sentenced on May 13 after pleading guilty in September 2023. U.S. prosecutors have recommended leniency, citing Cohen-Pavon's substantial assistance to the government. Celsius, along with cryptocurrency exchange FTX, filed for bankruptcy in 2022 during a downturn in the crypto market that led to the collapse of several companies. In other news, the city council of Spokane Valley, Washington, has unanimously passed an ordinance banning virtual currency kiosks and ATMs. This decision was made in response to numerous residents falling victim to crypto-related scams. The ordinance imposes a $250 civil penalty for noncompliance and allows officials to revoke the business licenses of operators found in violation. Entities hosting these kiosks and ATMs have 30 days to comply. Spokane Valley's actions come ahead of Iowa Attorney General Brenna Bird's announcement that the state will establish rigorous oversight for crypto ATMs to protect residents from scammers. The law, SF2296, integrates crypto kiosks into Iowa's financial regulatory framework, enabling state authorities to impose civil penalties and injunctions on operators. Meanwhile, U.S. authorities have requested the forfeiture of $10 million connected to former FTX CEO Sam Bankman-Fried. In a filing with the U.S. District Court for the Southern District of New York, prosecutors overseeing Bankman-Fried's criminal case have asked for the assets to be used toward his forfeiture. SDNY U.S. Attorney Jay Clayton filed the motion after authorities located $10 million in cash tied to Bankman-Fried in an account at Fiduciary Trust Company. The funds are said to represent the return of an investment made by Bankman-Fried in Semafor. Following his conviction and 25-year prison sentence, Bankman-Fried was ordered to pay over $11 billion in forfeiture for defrauding FTX users and investors. Clayton noted that the judgment remains unpaid as Bankman-Fried awaits the outcome of an appeal.