Alex Mashinsky, Co-founder of Celsius, Arrested on Multiple Charges
Alex Mashinsky, the co-founder and former CEO of Celsius Network, was arrested on Thursday following an investigation into the collapse of the cryptocurrency lender. Mashinsky and others have been charged with securities, commodities, and wire fraud, as well as conspiracy to manipulate Celsius’ native token, $CEL. This comes as the US Department of Justice (DOJ) filed an indictment against Mashinsky, accompanied by separate lawsuits from the Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), and Federal Trade Commission (FTC).
Key Points:
– Mashinsky and Celsius’ Chief Revenue Officer are accused of running a scheme to mislead customers about Celsius’ market value and interest in $CEL.
– The CFTC alleges that Celsius participated in a fraud scheme by misrepresenting the safety and profitability of its digital asset-based finance platform.
– The SEC accuses Celsius and Mashinsky of securities fraud, claiming that CEL and Celsius’ Earn product are securities.
– The FTC filed a complaint against Celsius for violating the Federal Trade Commission Act in connection with the marketing and sale of cryptocurrency lending and custody services.
– Celsius has agreed to a $4.7 billion judgment and a permanent ban on handling customers’ assets as part of a settlement with the FTC.
Hot Take:
The arrest of Alex Mashinsky and the multiple charges against him and Celsius highlight the need for transparency and accountability in the cryptocurrency industry. This case serves as a reminder that emerging technologies are not above the law and that investors need to exercise caution when investing in digital assets. The actions taken by the DOJ, SEC, CFTC, and FTC send a strong message that fraudulent practices will not be tolerated in the crypto space.
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