Arrest of Celsius Network's Alex Mashinsky Followed by SEC, CFTC, FTC Lawsuits
According to a Bloomberg report, Alex Mashinsky, the CEO and co-founder of the crypto lending platform that went bankrupt, was arrested on Thursday after an investigation into the company's collapse.
Because Bitcoin
July 13, 2023
According to Bloomberg, an individual familiar with the situation reported that Alex Mashinksy, one of the co-founders and former CEO of the insolvent crypto lending company Celsius, was arrested on Thursday as part of an investigation into the company's collapse.
On the same day, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit accusing Mashinsky and Celsius of securities fraud. Shortly after, the Commodity Futures Trading Commission (CFTC) and Federal Trade Commission (FTC) also filed lawsuits against them.
The SEC's complaint asserts that Celsius' token CEL and its Earn Interest Program are considered securities. The complaint states, "Celsius offered and sold CEL and the Earn Interest Program as securities... Celsius and Mashinsky never filed a registration statement or had one in effect with the SEC for their offers and sales of securities through the Earn Interest Program."
The SEC's complaint asserts that Celsius' token CEL and its Earn Interest Program are considered securities. The complaint states, "Celsius offered and sold CEL and the Earn Interest Program as securities... Celsius and Mashinsky never filed a registration statement or had one in effect with the SEC for their offers and sales of securities through the Earn Interest Program."
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