Celsius Faces Bankruptcy and Regulatory Scrutiny
Celsius, a crypto lender, filed for bankruptcy protection last year due to crippling debts owed to investors during the crypto market downturn. Currently, Celsius creditors are voting on Fahrenheit’s proposed takeover, which could potentially help recover some of the lost funds. The deadline for filing objections is September 22.
In addition to its financial troubles, Celsius has come under scrutiny from various regulatory bodies, including the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the Federal Trade Commission (FTC).
The SEC has filed a lawsuit against Celsius and former CEO Alex Mashinsky, accusing them of fraudulent activities, unregistered sales of “crypto asset securities,” and price manipulation of their CEL token. Mashinsky has posted a $40 million bond and pleaded not guilty to criminal charges.
Recently, a court order froze Mashinsky’s assets and Texas home.
Hot Take: Celsius Struggles Continue Amid Regulatory Troubles
Celsius, the crypto lender, is facing bankruptcy and regulatory hurdles. With a proposed takeover by Fahrenheit, there is hope for investors to recover some of the lost funds. However, Celsius has also attracted the attention of multiple regulatory agencies, including the SEC, CFTC, and FTC.
The SEC has taken legal action against Celsius and its former CEO for alleged fraudulent activities and unregistered sales. This legal battle puts the company’s reputation at stake. Furthermore, the recent freezing of the CEO’s assets adds to the mounting challenges faced by Celsius.
Overall, Celsius needs to navigate its bankruptcy proceedings while simultaneously addressing the regulatory issues. The outcome of the takeover and legal proceedings will have a significant impact on the future of the company and its investors.
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