Celsius Gains SEC & CFTC Heed: Investigation Underway
The Celsius Network saga continues to unfold, with significant attention from US regulatory bodies. Bankrupt crypto lender Celsius and its former CEO, Alex Mashinsky, have been found to have violated multiple United States regulations by investigators, triggering increased scrutiny and legal action.
Mashinsky Facing Criminal Charges
Alex Mashinsky and others were charged by the US Department of Justice (DOJ) on seven counts, including conspiracy to commit securities fraud, commodities fraud, wire fraud, and price manipulation. These charges highlight the gravity of the alleged misconduct.
SEC & CFTC Actions Against Celsius
The Securities and Exchange Commission (SEC) has charged Celsius Network Limited (Celsius) and its founder and former CEO, Alex Mashinsky, for violating registration provisions of the securities laws. In parallel with the SEC and CFTC actions, the U.S. Attorney’s Office for the Southern District of New York has also charged Mashinsky, along with Celsius’s Chief Revenue Officer Roni Cohen-Pavon.
The CFTC is currently investigating Binance, but recently concluded its lawsuit against Celsius. The CFTC and Celsius agreed to resolve the complaint against the company by imposing a permanent injunction prohibiting future violations of the Commodity Exchange Act (CEA) and CFTC regulations.
New York Attorney General's Lawsuit
New York's attorney general sued Celsius founder Alex Mashinsky early this year, claiming he defrauded investors out of billions of dollars in digital currency by concealing the company's precarious financial state.
Ongoing Investigation & Regulatory Landscape
As per recent filings, Celsius Network is reportedly being investigated by US government agencies like the Commodity Futures Trading Commission [CFTC] and the Securities and Exchange Commission (SEC). Bloomberg has reported that the CFTC concluded that Celsius misled investors, further intensifying the pressure on the company and its former leadership.
Stay updated on the latest developments in the Celsius Network investigation and its impact on the cryptocurrency landscape. The outcome of these proceedings will likely shape the future of crypto regulation.