Investigators from the United States Commodity Futures Trading Commission (CFTC) have concluded that Celsius and its former CEO, Alex Mashinsky broke several US laws.
It has emerged that if a majority of commissioners from the CFTC agree with the conclusion, then the regulator could file a case against Mashinsky in federal court later this month.
Mashinsky Broke Rules
The United States Commodity and Futures Trading Commission (CFTC) has announced the conclusion of its probe into Celsius Network. According to attorneys from the regulator’s enforcement unit, Celsius and Mashinsky deliberately misled investors and broke several of the country’s investment laws before the firm’s eventual collapse in 2022. The CFTC revelations come a year after Celsius had filed for Chapter 11 bankruptcy and left thousands of customers, creditors, and investors in the lurch.
The New York Attorney General had sued Mashinsky on the 5th of January, 2023, alleging that the former Celsius CEO had misled investors, resulting in losses of billions of dollars.
“I’m suing the former CEO of cryptocurrency platform @CelsiusNetwork for defrauding investors out of billions of dollars. Alex Mashinsky lied to people about the risks of investing in Celsius, hid its deteriorating financial condition, and failed to register in New York.”
The New York Attorney General stated at the time that Mashinsky had defrauded investors, including 26,000 residents of New York State, out of billions of dollars worth of crypto. She added that Mashinsky’s actions leading up to the Celsius bankruptcy led to significant investor losses as he misrepresented the platform’s financial condition.
“As the former CEO of Celsius, Alex Mashinsky promised to lead investors to financial freedom but led them down a path of financial ruin. “The law is clear that making false and unsubstantiated promises and misleading investors is illegal. Today, we are taking action on behalf of thousands of New Yorkers who were defrauded by Mr. Mashinsky to recoup their losses.”
CFTC Could File Lawsuit Against Celsius
According to reports, the Commodity and Futures Trading Commission attorneys believe
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Author: Amara Khatri
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