BREAKING! SEC Sues Celsius And Founder Alex Mashinksy
- The New York Attorney General and the CFTC accused Alex Mashinky’s Celsius of rule-breaking. ‘
- A court-appointed examiner said the trouble crypto firm operated similarly to a pyramid scheme.
- Court documents also show that CEO Alex Mashinsky and other executives withdrew millions from the company leading up to the crash in 2022.
- The SEC is on a marauding crackdown with lawsuits against other entities like Binance and Coinbase.
Bankrupt crypto firm Celsius and founder Alex Mashinsky are being sued by the U.S. Securities and Exchange Commission (SEC), per Bloomberg.
The SEC’s complaint against Mashinsky and Celsuis was filed in a federal court on Thursday. Details about the complaint are yet to be disclosed at press time.
Thursday’s filing in Manhattan follows a flurry of lawsuits from the SEC against crypto businesses and operations in the U.S. The securities regulator recently sued two crypto’s largest exchanges – Binance and Coinase.
Regulators Sue Celsius
New York Attorney General Letitia James accused Mashinsky and his company of fraud. In January, an independent court-appointed examiner reported that Celsius operated like a Ponzi scheme.
The U.S. Commodity Futures Trading Commission (CFTC) also accused the Celsius founder and the bankrupt crypto company of rulebreaking, although Mashinsky dismissed the allegations as false.
This is a developing story.
