In a shocking turn of events, Celsius Network, the cryptocurrency lending company that collapsed in 2022, is now facing legal action from the US Securities and Exchange Commission (SEC). The SEC has filed a lawsuit against Celsius Network and its former CEO Alex Mashinsky, alleging violations of American laws.
This news comes on the heels of the Commodity Futures Trading Commission (CFTC) finding Celsius and Mashinsky guilty of breaking several laws before the company’s collapse. Mashinsky has been arrested in New York and is set to be arraigned in court on Friday.
The SEC’s lawsuit against Celsius and Mashinsky marks a significant development in the ongoing investigation into the company’s collapse. The specifics of the complaint have not been made public, but the enforcement action signals serious legal trouble for the embattled cryptocurrency firm.
According to reports, Mashinsky was taken into custody on Thursday morning as part of the investigation into Celsius Network’s collapse. Despite his denials of any wrongdoing, the former CEO now faces legal consequences for his alleged violations of US regulations.
The SEC and CFTC investigations were launched following Celsius Network’s announcement of voluntary Chapter 11 proceedings. The New York Attorney General also filed a lawsuit against Mashinsky earlier this year, accusing him of making false and misleading statements that led to investor losses.
As news of the SEC lawsuit broke, the price of Celsius Network’s native token, CEL, experienced a sharp decline. The token is currently trading at $0.1543, down 3.74% in the last 24 hours. While CEL has previously recovered from setbacks, the future remains uncertain in light of the latest legal developments.
Investors and industry observers are closely monitoring the situation as Celsius Network navigates through Chapter 11 bankruptcy proceedings and faces mounting legal challenges. The outcome of the SEC lawsuit and Mashinsky’s court appearance on Friday will undoubtedly have far-reaching implications for the cryptocurrency industry.
For more information on this developing story, visit CoinJournal.
