• The US Commodity Futures Trading Commission (CFTC) has concluded their investigation into Celsius Network and its former CEO, Alex Mashinsky.
• The CFTC has found that Celsius and Mashinsky deliberately misled investors and violated several of the country’s investment laws before the firm’s eventual collapse in 2022.
• If the CFTC commissioners agree with this conclusion, they could file a case against Mashinsky in federal court later this month.
CFTC Investigating Celsius Network
Investigators from the United States Commodity Futures Trading Commission (CFTC) have concluded that Celsius and its former CEO, Alex Mashinsky broke several US laws. It has emerged that if a majority of commissioners from the CFTC agree with the conclusion, then the regulator could file a case against Mashinsky in federal court later this month.
Mashinksy Broke Rules
The United States Commodity and Futures Trading Commission (CFTC) has announced the conclusion of its probe into Celsius Network. According to attorneys from the regulator’s enforcement unit, Celsius and Mashinsky deliberately misled investors and broke several of the country’s investment laws before the firm’s eventual collapse in 2022. The CFTC revelations come a year after Celsius had filed for Chapter 11 bankruptcy and left thousands of customers, creditors, and investors in the lurch.
New York Attorney General Sues
The New York Attorney General had sued Mashinsky on the 5th of January, 2023, alleging that the former Celsius CEO had misled investors, resulting in losses of billions of dollars. She added that Mashinsky’s actions leading up to the Celsius bankruptcy led to significant investor losses as he misrepresentedthe platform’s financial condition.
CFTC Could File Lawsuit Against Celsius
According to reports,the Commodityand Futures Trading Commission attorneys believe thatCelsiusmisledinvestorsand shouldhaveregistereditselfwiththe CFTC.Accordingto sourcesclosetothemattertheCFTccouldinitiate filingofafederalcaseagainstCelsiusifamajorityofitscommissionersagreewiththeconclusionthatcryptolenderdidnotproperlyregisterwiththeregulatorpriortooperatingintheUnitedStatesmarketplace
Conclusion
It is now up to a majority vote by CFTC Commissioners if they will file a lawsuit against formerCEO AlexMashinskyandCelsiusNetworkfortheirallegedviolationsofUSinvestmentlawsandmisleadingsomeoftheirmillionsofinvestorsintotheirultimatecollapsein2022