Celsius’s Mashinsky arrested, SEC files securities fraud charges – reports
According to Bloomberg on July 13, Alex Shinxy, the co-founder and former CEO of bankrupt cryptocurrency finance company Celsius, was arrested early this morning. reportsaid, citing a person familiar with the matter.
The U.S. Securities and Exchange Commission (SEC) also filed securities fraud charges against Mashinsky and Celsius, according to July 13. Court submission. Regulators argue that:
“Defendants falsely promised investors high-return and safe investments through its “interest-earning program,” misled investors about the economic success of Celsius’ business, and claimed that Celsius’ proprietary cryptocurrency securities, Illegally manipulated the price of the so-called “CEL”. token. “
Earlier this month, investigators from the Commodity Futures Trading Commission (CFTC) reportedly found Celsius Network violated U.S. regulations prior to its bankruptcy. The report suggests legal proceedings against Celsius and Mashinsky could begin this month.
Celsius filed for bankruptcy last year amid a market downturn that led to the bankruptcy of several crypto-related companies. Since then, bankrupt companies have recovered their money and stabilized their financial situation. The lender filed a lawsuit against staking platform StakeHound and obtained permission to convert its altcoin holdings into Bitcoin (BTC) and Ethereum (ETH).
Celsius’ Mashinsky Arrested, SEC Indicted On Securities Fraud Charges – Report First Appeared On CryptoSlate.
