Why are Mangione’s lawyers arguing that the state case should be dropped?

Kraken’s payment app, Krak, has launched a multi-asset debit card in the US, allowing customers to spend crypto and fiat while earning up to 2% cashback in dollars or Bitcoin (BTC).

The card supports more than 600 currencies and assets, with holdings converted into US dollars at point of sale. A single purchase can draw from multiple balances, with users setting the order in which assets are spent, according to an announcement Tuesday.

The card is issued by Lead Bank on Visa’s network and powered by Stripe Issuing, with physical and virtual versions available to eligible US customers. The company said cashback rates depend on average assets held across Krak, Kraken and Kraken Pro.

Krak is positioning the card as an alternative to credit-based rewards programs. A Morning Consult survey of 2,001 US adults commissioned by Krak found that 42% of credit card holders worry about paying off their monthly balance, while 60% of respondents said they would switch to a debit card offering rewards without taking on debt.

Kraken’s consumer money and payments app has issued more than 135,000 multi-asset cards across the UK and European Economic Area since launching there in December 2025, the company said.

Related: Kraken opens Jersey Mike’s IPO to retail investors through tokenized shares and direct allocations

Payward eyes broader financial services push

Payward has set its sights on expanding its financial services product line.

Co-CEO of Kraken’s parent company, Arjun Sethi, discussed the broader strategy Tuesday at the Wyoming Blockchain Symposium, including its push into additional asset classes and financial services.

“As you start expanding into multiple asset classes, you’re just generally gonna be less susceptible to very specific markets,” Sethi said.

He added that Payward now offers banking services and described tokenization as “a large part” of the company’s broader effort to expand its financial offerings. 

He also compared the company’s ambitions with those of major traditional financial institutions, saying the company needs to build products and services “not too different to a JP Morgan or a financial institution.”

Sethi’s comments come as major crypto exchanges broaden their businesses beyond spot crypto trading, with Coinbase and others expanding into equities, derivatives, prediction markets, tokenized assets and pre-IPO products.

Separately, Kraken on Tuesday launched trading in more than 7,000 US-listed stocks for customers in the European Economic Area (EEA).

Magazine: ‘Fabricated rumors’ about BitMart founder, Binance bStocks dominate: Asia Express

Prosecutors in the Southern District of New York (SDNY) are urging a federal judge to reject Alex Mashinsky’s bid to overturn his 12-year prison sentence tied to Celsius’s collapse. In a Friday filing, SDNY attorneys James McDonald and Allison Nichols argued that Mashinsky’s petition lacks legal substance and should be denied without additional proceedings.

The dispute centers on a motion Mashinsky filed after telling the court in May that he would proceed pro se—representing himself. His petition to vacate the conviction and sentence includes claims that point to matters involving cryptocurrency exchange FTX and his former colleague, Celsius chief revenue officer Roni Cohen-Pavon.

Key takeaways

• SDNY prosecutors asked the court to deny Mashinsky’s motion to vacate, calling multiple arguments “without merit.”
• The government criticized the petition for relying on allegations that were not supported by a sworn declaration.
• Prosecutors disputed claims that Mashinsky received ineffective assistance of counsel.
• Mashinsky is serving a May 2025 sentence of 144 months after pleading guilty to commodities and securities fraud.
• Cohen-Pavon, who prosecutors described as providing “substantial assistance,” was sentenced to time served in May.

Prosecutors reject claims in Mashinsky’s petition

In their filing, prosecutors said Mashinsky failed to meet the threshold for relief. They argued that his motion is essentially a reprise of issues raised during sentencing, rather than a valid basis to undo the conviction or the punishment.

Prosecutors also pushed back on Mashinsky’s complaints about the performance of his legal team. While the filing indicates Mashinsky stops short of asserting factual innocence, it characterizes his approach as shifting blame to counsel for not pursuing certain arguments.

“Mashinsky has not even submitted a sworn declaration in support of these baseless allegations, and his petition should be denied without a hearing or further fact-finding,” prosecutors wrote, adding that the court should not revisit settled points based on unsworn claims.

What the court filing says about evidence and procedure

Mashinsky’s motion was filed after he announced he would take over his own representation. The government’s response suggests the petition’s evidentiary posture is a key weakness: prosecutors singled out the absence of a sworn declaration supporting the allegations.

That procedural detail matters because motions to vacate typically require more than generalized accusations; courts generally look for specific, substantiated grounds for relief. In the government’s view, Mashinsky’s filing did not meet that standard.

As of Tuesday, the judge overseeing the case had not issued a response to the government’s submission.

Background: Celsius collapse, guilty pleas, and sentencing

Mashinsky was sentenced in May 2025 to 144 months in prison after pleading guilty to commodities fraud and securities fraud connected to “manipulative and deceptive devices” at Celsius. The guilty plea followed a broader legal crackdown on Celsius after the platform filed for bankruptcy in 2022 amid a wider market downturn that began with the collapse of Terraform Labs.

Roni Cohen-Pavon—Celsius’s chief revenue officer—was also indicted in 2023 alongside Mashinsky and later pleaded guilty. According to prosecutors, Cohen-Pavon provided “substantial assistance” to the government’s case. In May, she was sentenced to time served.

At sentencing, Mashinsky was ordered to pay $48 million in forfeiture. He also agreed to pay $10 million as part of a separate settlement with the US Federal Trade Commission, alongside arrangements described as including a $47 billion judgment that was suspended.

Earlier coverage also noted related enforcement actions against Celsius leadership, including a separate FTC matter involving Celsius co-founders Leon Goldstein and another defendant, referenced in connection with the broader Celsius fallout.

Regulators still pursuing parallel cases

While the criminal case reached sentencing for Mashinsky and Cohen-Pavon, regulators continued to work through other legal tracks tied to Celsius leadership.

In June, the US Commodity Futures Trading Commission (CFTC) announced that Mashinsky was permanently banned from trading in markets under the CFTC’s authority. That action was described as among the last major resolutions tied to Mashinsky and Celsius following the 2022 collapse.

At the same time, a civil action by the US Securities and Exchange Commission (SEC) involving a co-founder was reported as ongoing even after the criminal case moved forward and the court issued judgment against the platform. As of July 30, the SEC said its attorneys and Mashinsky were “engaged in settlement discussions.” The SEC requested 60 days to file a status report, effectively pushing the next checkpoint toward the end of September.

For investors and market participants, these parallel processes underline a recurring reality in crypto enforcement: criminal cases can conclude on a timetable that differs from regulatory litigation. Even when one front reaches a sentencing milestone, other matters—whether commodities, securities, or consumer-protection—can continue to shape compliance expectations and potential liability.

Readers should watch whether the SDNY judge grants or denies Mashinsky’s request to vacate, and whether the court allows any additional fact-finding or hearings. At the same time, settlement dynamics in the SEC civil matter—and any further regulatory steps following the CFTC’s permanent trading ban—remain key to understanding what outcomes could still materially affect Celsius-related defendants and those watching closely for precedent in crypto enforcement.

An address associated with Justin Sun-owned exchange HTX is causing controversy on X after it sent out a variety of so-called “dust” transactions.

Purported users are claiming that transactions sent from 0xa03400E098F4421b34a3a44A1B4e571419517687 were sent to their deposit addresses on other exchanges, provoking review of their accounts.

These other exchanges are apparently reviewing these accounts because these transactions suggest links to the sanctioned HTX.

An effort by Alex Mashinsky, the former CEO of now-defunct cryptocurrency lending platform Celsius, to convince a federal court to vacate his 12-year sentence for fraud and market manipulation faces pushback from US prosecutors in the Southern District of New York (SDNY).

In a Friday filing, SDNY Attorney James McDonald and Assistant US Attorney Allison Nichols said that the court should deny Mashinsky’s petition to vacate his conviction and sentence, saying that many of his legal arguments were “without merit” and pushing back against claims of ineffective assistance of counsel. 

The former Celsius CEO informed the court in May that he would be proceeding pro se — that is, representing himself in the case — and filed a motion to vacate, including claims about cryptocurrency exchange FTX and his former colleague, the company’s chief revenue officer Roni Cohen-Pavon.

“Mashinsky has not even submitted a sworn declaration in support of these baseless allegations, and his petition should be denied without a hearing or further fact-finding,” said prosecutors, adding:

“[…] He presents a litany of complaints, blaming others for problems at Celsius and rehashing the evidence presented at his sentencing hearing. Though Mashinsky stops short of claiming that he is factually innocent, he blames his lawyers for failing to press certain arguments on his behalf.”

As of Tuesday, the judge overseeing the case had not responded to the federal prosecutors’ filing. Mashinsky was sentenced in May 2025 to 144 months in prison, having pleaded guilty to commodities fraud and securities fraud related to “manipulative and deceptive devices” at Celsius. Cohen-Pavon, who according to the government provided “substantial assistance” to the prosecutors case again Mashinsky, was sentenced to time served in May.

Related: Celsius co-founders Leon, Goldstein to pay FTC over $6M

Celsius was one of a slew of crypto companies to file for bankruptcy in 2022 amid a market downturn starting with the collapse of Terraform Labs. Authorities indicted Mashinsky and Cohen-Pavon in 2023 and both subsequently pleaded guilty. The former CEO was ordered to pay $48 million in forfeiture at sentencing and agreed to pay $10 million as part of a separate settlement with the US Federal Trade Commission.

Mashinsky banned from commodities markets trading

The US Commodity Futures Trading Commission (CFTC) announced in June that the former Celsius CEO was permanently banned from trading in markets within the commodities regulator’s purview.

The CFTC case was one of the last against Mashinsky and Celsius to be resolved following the company’s collapse in 2022. However, the US Securities and Exchange Commission (SEC) civil action against the co-founder, first filed in 2023, was still ongoing despite the court reaching a judgment against the platform months after the initial complaint.

As of July 30, the SEC reported that its attorneys and Mashinsky were “engaged in settlement discussions.“ The regulator asked the court for 60 days to file a status report on the matter, pushing any potential resolution to the end of September.

Magazine: ‘Fabricated rumors’ about BitMart founder, Binance bStocks dominate: Asia Express

Bitcoin climbed to around $65,000 after the Wall Street open, extending gains as broader risk sentiment stabilized despite renewed geopolitical concerns tied to the US and Iran. The move came alongside a rebound in US equities, where the S&P 500 bounced from its lowest level since early August.

While stocks were finding support, the bond market and oil developments signaled a more complicated macro backdrop. BTC’s latest push also revived chart-based debate over whether the market is genuinely transitioning from consolidation into a sustainable breakout.

Key takeaways

• Bitcoin reached $65,000 for the first time since Aug. 10, following a rebound in the S&P 500.
• US 30-year yields jumped to 5.34%, the highest since January 2007, highlighting inflation and borrowing concerns.
• Trump’s Strait of Hormuz comments pushed geopolitical headlines back into focus, even as oil showed limited immediate volatility.
• Technical traders are watching key levels tied to a head-and-shoulders “bottoming” argument around $62,300.

US equities bounce while Bitcoin tests new highs

According to TradingView data referenced in the report, BTC/USD continued building on the week’s gains as the S&P 500 recovered from a session low of 7,696, its lowest since Aug. 4. The divergence matters because it suggests Bitcoin’s momentum is not merely mirroring equity direction—at least in the near term.

The geopolitical narrative returned to the forefront after US President Donald Trump posted on Truth Social that the Strait of Hormuz oil route would be treated as “new US territory,” framing the area as “open.” His later message emphasized that there were “no talks or conversations” with Iran, while asserting that naval conditions remained active and that the strait was operating.

Both the US and Iran have long-standing claims connected to control and security in the Hormuz region. In earlier commentary carried in the coverage, Trump also referenced threats against US ally Oman related to Oman’s plans to work with Iran on charging shipping tolls. Despite these headlines, oil’s immediate reaction appeared muted in the same timeframe, with WTI crude reported down about 1% to roughly $84 per barrel as of the time of writing.

Bond yields send a warning signal for risk assets

Even with stocks rebounding, government bond pricing suggested investors were still demanding more compensation for macro uncertainty. The US 30-year yield reached 5.34%, the highest level since January 2007, according to the cited market updates.

BNY Mellon analyst Geoff Yu warned in a research note quoted by the New York Times that the rise reflected investors seeking higher yields to cover inflation risk, while also pointing to the impact of government borrowing. The practical takeaway for crypto traders is that steep yield moves can raise the discount rate for risk assets, sometimes tightening financial conditions just as equities attempt to stabilize.

For Bitcoin specifically, this backdrop can create a tug-of-war: crypto may benefit from renewed interest when risk appetite returns, yet it can struggle if rates continue to rise sharply or if liquidity conditions tighten.

Chart watch: head-and-shoulders “bottoming” debate

Beyond macro headlines, the latest price action has turned attention back to technical structure. Trader and analyst Aksel Kibar, writing to X followers and cited in the report, focused on a potential reverse head-and-shoulders formation and pointed to $62,300 as the culmination point where a rebound would need to originate to validate the pattern.

Kibar argued that if Bitcoin is going to reverse higher, the move needs to develop from that area. He also discussed downside and upside scenarios if the structure fails or if the rebound sustains, including a potential target of $53,000 in the event of breakdown, and an upside target around $76,000 if the recovery extends.

That structure-focused framing is important because $65,000 is not simply a “new high” in isolation—it’s part of a decision zone where market participants determine whether the breakout is real or whether price returns to the prior range.

Why $65,000 may not be the finish line

The coverage also highlighted that earlier resistance levels have been a recurring barrier. Cointelegraph previously reported that underwater investors were contributing to Bitcoin’s inability to push higher. In the current update, Bitcoin’s rebound to $64,500 was described as stopping short of an overhead trend line: the 50-month exponential moving average (EMA), now referenced as $65,827.

That level is likely to draw attention from traders because moving averages often act as a proxy for longer-term trend health. A failure to reclaim and hold above the 50-month EMA could signal that the market is still negotiating the same distribution between sellers and buyers—especially if bond yields remain elevated.

At the same time, the fact that Bitcoin pressed toward $65,000 as US stocks bounced suggests demand is present. The immediate question is whether buyers can convert that momentum into follow-through without a renewed risk-off shock from rates or geopolitics.

Going forward, readers should watch whether BTC can hold above the reclaimed zone around the recent breakout levels and whether the market’s behavior around the $65,827 50-month EMA becomes more decisive—particularly as long-end Treasury yields and Hormuz-related headlines continue to influence broader risk sentiment.