Ad
News
Celsius’s Mashinsky arrested, SEC files securities fraud charges – reports Celsius’s Mashinsky arrested, SEC files securities fraud charges – reports

Celsius’s Mashinsky arrested, SEC files securities fraud charges – reports

The U.S. SEC alleges that Mashinksy and Celsius manipulated CEL's token value.

Celsius’s Mashinsky arrested, SEC files securities fraud charges – reports

Web Summit / CC BY 2.0 / Wikimedia. Remixed by CryptoSlate

Join Japan's Web3 Evolution Today

Alex Mashinksy, the co-founder and former CEO of bankrupt crypto lender Celsius, was arrested during the early hours of today, according to a July 13 Bloomberg report, citing people familiar with the matter.

The U.S. Securities and Exchange Commission (SEC) has also filed securities fraud charges against Mashinsky and Celsius, according to July 13 court filings. The regulator alleges that:

“Defendants falsely promised investors a safe investment with high returns through its “Earn Interest Program,” they misled investors about the financial success of Celsius’s business, and they fraudulently manipulated the price of Celsius’s own crypto asset security—the so-called “CEL” token.”

Earlier in the month, reports emerged that investigators with the Commodity Futures Trading Commission (CFTC) found that Celsius Network violated U.S. regulations before its bankruptcy. The report suggested legal proceedings could commence against Celsius and Mashinsky this month.

Celsius filed for bankruptcy last year amid a market downturn that led to the collapse of several crypto-related firms. Since then, the bankrupt firm has attempted to recoup funds and stabilize its financial situation. The lender filed a lawsuit against the staking platform, StakeHound, and has been authorized to convert its altcoin holdings to Bitcoin (BTC) and Ethereum (ETH).

Mentioned in this article
Posted In: , Bankruptcy, Crime, Legal