According to a Bloomberg report, former Celsius CEO Alex Mashinsky was arrested on criminal charges filed by several U.S. regulators this Thursday. The crypto company filed for bankruptcy in 2022 as other large entities in the space crumbled with the declining prices in the sector.
Per the report, the U.S. Securities and Exchange Commission sued Mashinsky and Celsius. In a document filed in the Southern District of New York, the regulator claims that the defendants raised “billions of dollars” by allegedly offering unregistered securities.
Another Crypto Giant Falls? Celsius Founder Under Arrest
Furthermore, the regulator claims that Mashinsky made “false promises” to his investors by offering them the “Earn Interest Program.” This financial product allowed customers to lock tokens on the platform to earn yield.
The SEC claims the company allegedly manipulated their native token, CEL, for their gain. Thus, Celsius “lied” and took its customers’ funds via the token, w
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