BREAKING: Celsius Fined Enormous Sum By SEC

July 13, 2023 11:53 am Comments

ProCoin News recently reported that former Celsius CEO Alex Mashinsky was arrested on Thursday morning by U.S. authorities.

The Securities and Exchange Commission (SEC) filed formal charges against Mashinsky, and the now-defunct lending platform Celsius, mere hours before the former CEO was arrested.

As part of the formal charges against the bankrupt lender, Celsius has been ordered by the SEC to pay an incredibly hefty fine.

Moreover, the firm has been banned from engaging in trading and other financial activities. …

However, the fine has reportedly been suspended for the time being until Celsius reimburses clients and creditors.

Whale Coin Talk reports: “Celsius Network has been banned from trading and fined $4.7 billion by the Federal Trade Commission.”


Coin Telegraph provided background information on Celsius’ former operations:

The New Jersey-based firm marketed a variety of cryptocurrency products and services to consumers, such as interest-bearing accounts, personal loans secured by their cryptocurrency deposits and a cryptocurrency exchange.

One user had this to say: “Where is Celsius finding $4B for settlement? Operations gonna be handed to big banks & revenue will be used for fines over time? Either way, SEC is willing to settle.”


Blockworks reports:

The settlement does not apply to former Celsius executives, including former CEO Alex Mashinsky, as well as co-founders Shlomi Daniel Leon and Hanoch Goldstein.

The executive trio, the FTC said, did not reach a settlement with the regulator and would face federal court proceedings as a result.

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