- Alex Mashinsky was detained on Thursday morning as a result of the ongoing investigation.
- The US Securities and Exchange Commission wasn’t the only US agency to take action.
According to a court filing made on Thursday, the U.S. SEC is suing defunct cryptocurrency lender Celsius Network and its founder and former CEO Alex Mashinsky.
According to Bloomberg, citing a source familiar with the matter, Alex Mashinsky was detained on Thursday morning as a result of the ongoing investigation into the company’s collapse that followed the court petition.
Multiple Charges Filed
On July 13, the US Securities and Exchange Commission (SEC) filed a complaint against Celsius Network and its former chief executive, Alex Mashinsky, accusing them of fraud, market manipulation, and violations of securities laws.
The US Securities and Exchange Commission wasn’t the only US agency to take action against Celsius Network and its former CEO Alex Mashinsky; the Department of Justice, the CFTC, and the FTC all did so as well.
These claims come on the heels of a lawsuit filed against Celsius Network by New York’s attorney general earlier this year. On Thursday morning, law enforcement officials detained former CEO Alex Mashinsky after the filing of various lawsuits against him and the company.
After major cryptocurrency exchanges Binance and Coinbase were sued by the SEC last month, regulatory uncertainty surrounded the cryptocurrency market. Meanwhile, Mashinsky has also been accused of breaking federal securities laws by the SEC. The SEC has filed a lawsuit against CEL and Celsius, over unregistered securities.
Recent announcements by Celsius Network to convert all cryptocurrencies to Bitcoin (BTC) and Ethereum (ETH) have raised community worries over the gradual sale of altcoins. Legal action may put a hold on BTC, ETH, and other tokens, while authorities figure out how to pay back Celsius’s creditors.
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