CFTC and SEC Launch Investigations into Celsius
Three days after Celsius imploded on the 13th of July 2022, the CFTC, swiftly followed by the SEC, launched separate investigations into the crypto platform’s business practices. The company was also investigated – and in some cases sued – separately by local authorities in Vermont, New York, and elsewhere.
– CFTC and SEC launch investigations into Celsius
– Local authorities in Vermont, New York, and elsewhere also investigate the company
– Charges brought against Celsius by the CFTC would likely be federal
Allegations of Misleading Investors and Ignoring Regulations
According to Bloomberg, the CFTC’s investigation has concluded, and individuals within the organization have said that both Alex Mashinsky and his platform misled investors and ignored existing regulations. These allegations align with those made by NYAG Letitia James, who accused Mashinsky of making false claims about the company’s financial situation.
– CFTC concludes investigation, accuses Mashinsky and Celsius of misleading investors
– Allegations align with those made by NYAG Letitia James
Possible Lawsuit and Response
The CFTC will reportedly hold an internal vote on whether to file a federal lawsuit against Celsius and Mashinsky. If a majority of commissioners agree with the findings, a lawsuit may be filed by the end of July. Mashinsky has retorted that the NY Attorney General misunderstood Celsius’ business model and his role as CEO.
– Internal vote to determine if a federal lawsuit will be filed
– Mashinsky claims NY AG misunderstood Celsius’ business model and his role as CEO
Potential Impact and Previous CFTC Cases
If the case goes to federal court, it would be one of over 85 cases filed by the CFTC concerning digital assets. The agency has already been responsible for over $4 billion in penalties and restitutions from fraudulent crypto markets.
– Potential impact of the case on Celsius and Mashinsky
– CFTC has filed over 85 cases concerning digital assets, resulting in $4 billion in penalties and restitutions
Hot Take
The investigations and potential lawsuit against Celsius and its former CEO highlight the increased scrutiny and regulation of the cryptocurrency industry. It also serves as a reminder for investors to thoroughly research and evaluate investment opportunities in this volatile market. The outcome of this case could have significant implications for the future of crypto platforms and their accountability to investors.
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