CFTC Claims Ex-Celsius CEO Mashinsky Defied U.S Regulations

The Commodity Futures Trading Commission (CFTC) has concluded that Celsius, a bankrupt cryptocurrency lender, along with its former CEO, Alex Mashinsky, violated several U.S. regulations prior to the company’s downfall. 

As per a report published on July 5 by Bloomberg, a source familiar with the matter revealed that attorneys from the CFTC’s enforcement division determined that Celsius had deceived investors and failed to register with the regulatory body. Furthermore, they found that Alex Mashinsky had violated multiple regulations. 

According to the source, if a majority of CFTC Commissioners concur with the investigators’ conclusions, there is the possibility that the agency may proceed to file a lawsuit against the defunct crypto lender in U.S. federal court within this month. 

These recent findings by the CFTC investigators contribute to the mounting regulatory scrutiny by the now-defunct crypto lending platform. On January 5, the New York Attorney General filed a lawsuit against Alex Mashinsky, accusing him of misleading investors and causing significant financial losses amounting to billions of dollars. 

Following the abrupt suspension of user withdrawals by Celsius on June 13 last year, securities regulators from five U.S. states initiated an investigation into the matter on June 16. 

Bankruptcy filings indicate that in addition to the ongoing investigation by securities regulators from five U.S. states, both the Securities and Exchange Commission and federal prosecutors in Manhattan have been conducting their own inquiries into Celsius. 

Also Read: Celsius Converts Altcoins to BTC or ETH After SEC Talks