Alex Mashinsky, former CEO and founder of Celsius, at PBWS 2022 – RoyalsBlue.com ©
The American authorities proceeded to thearrest d’Alex Mashinsky. The former CEO of the platform from crypto loans bankrupt Celsius is accused of fraud by the DOJthe SEC and the CFTC.
This Thursday, Alex Mashinsky was arrested following an investigation by the U.S. Department of Justice, reported Bloomberg. The DOJ accuses Mashinsky of orchestrating a scheme aimed at swindle visit customers from Celsius.
At the same time SEC has filed a complaint against the former Celsius for securities fraud.
Earlier this month, we learned that the CFTCanother American regulator, could also sue the founder and his platform. Well, that’s now the case too.
The 58-year-old entrepreneur was already being sued in New York State. Mashinsky’s lawyers argued that the New York prosecutor’s complaint was without merit.
Following the release of the news, the price of the Celsius native token, CELfell by around 5% before rebounding slightly to around $0.136.
Launched in 2017, Celsius made it possible to generate substantial returns by lending crypto-currencies. The platform filed for bankruptcy last summer in the wake of falling cryptocurrency prices and the implosion of the Terra ecosystem.
In May, Celsius accepted the highest bid to acquire its activities. The consortium Fahrenheit was the winner.
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