According to sources familiar with the matter, investigators at the Commodity Futures Trading Commission (CFTC) have reportedly concluded that Celsius, the bankrupt cryptocurrency lending firm, and its former CEO Alex Mashinsky violated multiple US regulations. cement division lawyers found that Celsius misled investors, failed to register with regulators, and determined that Mashinsky committed several rule violations. If a majority of CFTC commissioners agreed with the investigators' findings, the agency could file a lawsuit against Celsius in US federal court as ear ly as this month.
The CFTC's investigation findings add to the ongoing regulatory actions against Celsius. Earlier this year, the former CEO was sued by the New York attorney general, who accused him of misleading investors and causing substantial losses. Additionally, on June 16, 2022, securities regulators from five US states launched their own investigations into the company following the sudden halt of user withdrawals on June 13.
Apart from the CFTC, other regulatory bodies such as the US Securities and Exchange Commission (SEC) and federal prosecutors in Manhattan have initiated investigations into Celsius. However, no specific details regarding the progress of these investigations have been disclosed publicly.
The regulatory scrutiny faced by Celsius and its former CEO highlights the increasing focus of authorities on the cryptocurrency lending sector. If the CFTC proceeds with a lawsuit, it could further impact the legal proceedings and potentially result in significant consequence for the company and individuals involved.
