Mashinsky to Go Pro Se; Spokane Valley Bans Kiosks; $10M Sought

Lawyers for Alex Mashinsky filed papers on Wednesday saying he will proceed pro se and represent himself at his upcoming sentencing in the case arising from his role at Celsius. Court filings in the matter list a 12‑year prison term tied to convictions for fraud and market manipulation.

Roni Cohen‑Pavon, a former Celsius executive who pleaded guilty in September 2023, is scheduled to be sentenced on May 13. In a May 4 filing federal prosecutors asked the judge to consider Cohen‑Pavon’s “substantial assistance” to the government when setting a sentence recommendation.

The Spokane Valley city council in Washington voted unanimously on Tuesday to ban virtual currency kiosks and ATMs within city limits. The ordinance imposes a $250 civil penalty for violations, allows officials to revoke business licenses for noncompliant operators, and gives businesses 30 days to bring devices into compliance or remove them. City officials cited a rise in local complaints about kiosk‑related scams.

In Iowa, Attorney General Brenna Bird announced that the state will expand oversight of crypto ATMs through legislation known as SF2296. The law adds crypto kiosks to the state’s financial regulatory framework and grants regulators the authority to seek civil penalties and injunctions against operators who violate the rules.

In the Southern District of New York, federal prosecutors filed a motion asking a judge to apply $10 million recently located in an account at Fiduciary Trust Company toward the forfeiture judgment against Sam Bankman‑Fried. SDNY authorities wrote that the funds represented “the return of the investment made by [Bankman‑Fried] in Semafor.” Bankman‑Fried was convicted on fraud charges, sentenced to 25 years in prison and ordered to forfeit more than $11 billion. Prosecutors noted the forfeiture judgment remains unpaid while appeals proceed.

Celsius and the FTX exchange both filed for bankruptcy in 2022 amid a broader downturn in cryptocurrency markets. Regulators and prosecutors have since pursued criminal charges and civil remedies related to those collapses.