HomeNewsCelsius and Former CEO Allegedly Breached CFTC Regulations

Celsius and Former CEO Allegedly Breached CFTC Regulations

- Advertisement -
  • Celsius Network, a bankrupt cryptocurrency lending platform, and its former CEO Alex Mashinsky, might be subjects of a CFTC case due to alleged rule violations.
  • According to investigators at the CFTC, Celsius and Mashinsky may have misled investors, acting contrary to the regulator’s guidelines.

CFTC Investigation Targets Celsius and Former CEO

Bankrupt cryptocurrency lending platform, Celsius Network, and its ex-CEO Alex Mashinsky might face a lawsuit from the Commodity Futures Trading Commission (CFTC) as early as this month, Bloomberg reported, citing sources close to the issue.

Alleged Breach of CFTC Regulations

According to the report, CFTC investigators have determined that both the failed crypto lender and its CEO violated the regulator’s guidelines through misleading investors. The CFTC will proceed with filing a lawsuit if the majority of the agency’s commissioners concur with these findings. Both Celsius and the CFTC did not immediately respond to requests for comments.

- Advertisement -

Earlier this year, an independent examiner appointed by U.S. courts shared similar sentiments with the Vermont’s financial regulator, expressing the view that Celsius at times operated similarly to a Ponzi scheme.

The court-appointed examiner noted significant discrepancies between Celsius’s operational practices and its communication with customers. The analysis highlighted,

“In every key respect – from how Celsius described its contract with its customers to the risks it took with their crypto assets – how Celsius ran its business differed significantly from what Celsius told its customers.”

With these alleged deceptive practices and potential regulatory violations under investigation, it remains to be seen how the CFTC commissioners will assess the findings. Should they agree, Celsius Network and its former CEO Alex Mashinsky could find themselves facing a significant legal challenge by the end of the month.

- Advertisement -
ETHNews does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to cryptocurrencies. ETHNews is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned.
Jack Williams
Jack Williams
As a Blockchain Analyst, I specialize in analyzing the performance of decentralized systems and optimizing their efficiency. Through data analysis, I provide insights on blockchain technology, smart contracts, and cryptocurrencies to help businesses make informed decisions and improve their operations.
- Advertisment -spot_img