Celsius’s Mashinsky arrested, SEC files securities fraud charges – reports News ▸ US ▸ Bankruptcy
Celsius’s Mashinsky arrested, SEC files securities fraud charges – reports
The U.S. SEC alleges that Mashinksy and Celsius manipulated CEL's token value.
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Updated: Jul. 13, 2023 at 2:26 pm UTC
Web Summit / CC BY 2.0 / Wikimedia. Remixed by CryptoSlate
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).
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Ethereum
$3,195.87
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Celsius
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Celsius Network is a P2P decentralized lending & borrowing platform.
Celsius Network
Celsius Network is a bankrupt cryptocurrency lending company that was founded in 2017 and headquartered in Hoboken, New Jersey.
Alex Mashinsky, born in 1965 in the Soviet Union to a Jewish family, moved to Israel in the 1970s.
