Summary:
According to investigators at the Commodity Futures Trading Commission (CFTC), cryptocurrency lender Celsius Network and its former CEO, Alex Mashinsky, violated US regulations before the company’s collapse. The CFTC may file a case in federal court this month if the majority of commissioners agree. Attorneys at the CFTC found that Celsius misled investors and should have registered with the regulator. Celsius filed for bankruptcy last year and a court-ordered examiner’s report revealed that the company made risky investments with customer funds and misrepresented its market-making activities. Mashinsky was also accused of selling the native token, CEL, while claiming to buy or hold it. New York Attorney General Letitia James has already sued Mashinsky for defrauding investors.
Key Points:
– Investigators at the CFTC concluded that Celsius Network and its former CEO violated US rules.
– The CFTC may file a case in federal court soon if the majority of commissioners agree.
– Celsius misled investors and should have registered with the regulator, according to CFTC attorneys.
– Celsius filed for bankruptcy and made risky investments with customer funds.
– Former CEO Mashinsky was accused of selling the native token, CEL, while claiming to buy or hold it.
Hot Take:
The findings by investigators at the CFTC suggest that Celsius Network and its former CEO engaged in fraudulent activities, which ultimately led to the company’s collapse. This highlights the importance of regulatory oversight in the cryptocurrency industry to protect investors from misleading practices and risky investments. The potential legal action by the CFTC and the lawsuit by the New York Attorney General send a strong message that fraudulent behavior will not be tolerated. It also serves as a reminder for investors to conduct thorough due diligence and be cautious when investing in cryptocurrency-related ventures.
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