July 6, 2023 at 12:18 GMTModified date: August 9, 2023 at 09:00 GMT
July 6, 2023 at 12:18 GMT

CFTC accuses Celsius of breaking rules, CEL down 9%

Celsius Network’s Alex Mashinsky is facing the risk of a lawsuit at the hands of the CFTC after being accused of breaking the rules of the agency.

Celsius (CEL). Pic: Twitter

Celsius Network’s Alex Mashinsky is currently facing a risk of lawsuit at the hands of the U.S. Commodity and Futures Trading Commission (CFTC). The bankrupt lender and its ex-CEO are being accused of breaking the rules of the agency.

According to its findings, the crypto lender deceived investors and neglected to register with the CFTC. If a majority of the CFTC’s commissioners agree to this discovery, the regulatory watchdog will go ahead to file a lawsuit in federal court.

A recent Bloomberg report claimed that the CFTC is already building a case against the firm and Mashinsky. As stated by inside sources familiar with the matter, the regulator is set to vote on bringing the case as soon as this month.

Celsius Network is already facing a lawsuit filed by New York attorney general Letitia James, following its bankruptcy last July. James alleged that Mashinsky gave a false account of the company’s financial situation and lied about the platform’s security. Filed in January, the lawsuit charges Mashinsky with defrauding millions of investors, including more than 26,000 residents of New York.

On the other hand, the U.S. Securities and Exchange Commission (SEC) and federal prosecutors in Manhattan are also looking into the bankruptcy filings of Celsius Network.

The repercussions of the recent CFTC probe could be seen in the price of Celsius’ native crypto $CEL. The coin was struggling at $0.153, losing about 9% following the news.

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