Alex Mashinsky, the co-founder and former CEO of Celsius, will stand trial in September 2024, according to a report from Bloomberg on Oct. 3.

That report indicates that Mashinsky’s trial has been scheduled for Sept. 17, 2024. Mashinsky has been charged with securities fraud, commodities fraud, wire fraud, and conspiracy to manipulate the value of the company’s native crypto token, CEL.

While the full details of Mashinsky’s defense strategy are not available, it appears his lawyers will make a case based on the ambiguity surrounding the legal status of cryptocurrencies. One lawyer said that the “law about what is a security is fluid” in an in-court statement quoted by Bloomberg.

The trial date was set during a hearing on October 3. Although the public court docket for Mashinsky’s case has not yet reflected the recent changes, records confirm that new filings were submitted today.

Case has been developing for months

Mashinsky was originally arrested and charged on July 13, 2023. He was released on bail for $40 million on July 14, though his assets were frozen in August.

Mashinsky’s criminal fraud case is being conducted by the U.S. Attorney’s Office for the Southern District of New York, a division of the Department of Justice. He separately faces a civil fraud case from the New York Attorney General’s office and a securities case from the U.S. Securities and Exchange Commission.

Celsius itself collapsed under Mashinsky’s management last year. It halted withdrawals in June 2022 and entered bankruptcy proceedings in July 2022. Those bankruptcy proceedings are separate from the main criminal case against Mashinsky.

Celsius is currently making efforts to reestablish itself and compensate its customers who were affected by the company’s failure

The firm was said to owe about $4.2 billion to more than 100,000 creditors at the time of bankruptcy. Recent reports suggest that it may pay out about $2 billion in crypto plus as company shares and stake in litigation against Mashinsky.