DEVELOPING: Ex-CEO Of Celsius Targeted By CFTC—Lawsuit Inbound?

The bankrupt, and now-defunct, De-Fi lender Celsius has once again been thrust into the spotlight.

According to Bloomberg, the outlet that broke the story, “Bankrupt crypto lender Celsius and its ex-CEO broke US rules before its implosion, CFTC investigators have concluded, paving way for a potential case.”

EXCLUSIVE: Bankrupt crypto lender Celsius and its ex-CEO broke US rules before its implosion, CFTC investigators have concluded, paving way for a potential case https://t.co/VgRoOPjugL

— Bloomberg Asia (@BloombergAsia) July 5, 2023

Mashinsky and Celsius were ultimately found by the CFTC to have misled investors and violated U.S. securities laws.

Journalist Ally Versprille had this to say: “If the majority of the agency’s commissioners agree and vote to proceed with enforcement a case could be filed as soon as this month.”

SCOOP: CFTC investigators have concluded that bankrupt crypto lender Celsius Network and ex-CEO Alex Mashinsky broke agency rules. If the majority of the agency’s commissioners agree and vote to proceed with enforcement a case could be filed as soon as this month. w/ @ElleBeyoud pic.twitter.com/Mh5FbDvBE6

— Ally Versprille (@allyversprille) July 5, 2023

Coin Telegraph provided some background context:

The CFTC investigators’ findings add to a growing stack of regulatory actions against the now-defunct crypto lending platform. The New York Attorney General sued Mashinsky on Jan. 5, alleging that the former CEO misled investors and caused billions of dollars in losses.

Many in the crypto community were less than supportive of Mashinsky, who is alleged to have been directly responsible for the loss of billions in customer funds.

Alex Mashinsky dumping more CEL at an inflated price from last week’s pump. Recognize a pattern? Squeezers pump, plebs provide exit liquidity to King Puffer and Co.#shameful #stayawayfromCEL #deadproject https://t.co/rHyQpPWIZT

— Ruppi Macho 🛡️ (@realrephy) July 6, 2023

Hey Alex Mashinsky, I'd like to invite you to a Twitter Space. 😂 https://t.co/PoTnRpE0Fq

— Simon Dixon (@SimonDixonTwitt) July 5, 2023

Bitcoinist reports:

Celsius has chosen not to issue an official statement regarding the matter, leaving questions unanswered.

Similarly, insiders within the organization have refrained from explicitly identifying the specific regulations violated by the company and Mashinsky, apart from the failure to register with the relevant authorities.

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