Alex Mashinsky, the co-founder and former CEO of the now insolvent crypto lender Celsius Network, was arrested following an investigation into the company’s collapse.
Alex Mashinsky Faces Arrest: The Downfall Of Celsius Network
The U.S. Department of Justice (DOJ) has accused Mashinsky and the company’s Chief Revenue Officer, Roni Cohen-Pavon, of orchestrating a scheme to mislead customers about the company’s market value and interest in its CEL token.
Multiple Lawsuits Against Mashinsky And Celsius Network
Alongside the DOJ charges, Mashinsky and Celsius Network face lawsuits from the U.S. Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), and Federal Trade Commission (FTC). Now, the bail for Alex Mashinsky is set to 40 million dollars.
These lawsuits accuse the company and Mashinsky of securities fraud and misrepresenting the safety and profitability of its digital asset-based finance platform.
The Aftermath Of Celsius Network’s Collapse
Following the company’s bankruptcy filing last July, crypto consortium Fahrenheit won a bid to acquire Celsius Network’s assets. Amidst these developments, the SEC has asserted that Celsius’ token CEL and its Earn Interest Program are securities, further complicating the situation.
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