Hot Take: Crypto Lender Celsius Faces Legal Troubles for Alleged Fraud
Published just a minute earlier, recent developments reveal that Celsius, a crypto lender, has been accused of defrauding customers and providing misleading information about its profitability. The U.S. District Court for the Southern District of New York, under the direction of Judge Jed Rakoff, has issued an order to freeze various assets, such as funds held at Goldman Sachs, Merrill Lynch, and SoFi Bank, as well as a shared home in Austin, Texas.
Regulatory Spotlight: Multiple Lawsuits Target Celsius
Celsius, which filed for bankruptcy in the past, now faces billions of dollars in debt and the wrath of multiple regulators. The Securities and Exchange Commission (SEC) has sued the crypto lender and its CEO, Alex Mashinsky, accusing them of conducting fraudulent and unregistered sales of “crypto asset securities,” deceiving investors about the company’s financial standing, and manipulating the price of CEL, Celsius’ native token. Additionally, the Commodity Futures Trading Commission and the Federal Trade Commission have also filed lawsuits against Celsius.
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According to court documents, Mashinsky posted a $40 million bond and pled not guilty to the criminal charges in July.
