Bankrupt Crypto Lender Celsius and Former CEO Alex Mashinsky Found to Have Violated US Regulations, CFTC Investigation Reveals

Crypto lender Celsius and its former CEO, Alex Mashinsky, have been found to have violated multiple US regulations prior to the company’s collapse, according to investigators from the Commodity Futures Trading Commission (CFTC). The CFTC’s enforcement division determined that Celsius misled investors and failed to register with the regulator, while Mashinsky himself broke several regulations. If the CFTC commissioners agree with the investigators’ findings, a case could be filed against the bankrupted crypto lender in US federal court as early as this month. The regulatory actions against Celsius continue to mount, as the New York Attorney General previously sued Mashinsky, accusing him of misleading investors and causing significant financial losses. Additionally, securities regulators from five US states launched an investigation into Celsius after the abrupt suspension of user withdrawals on June 13. The Securities and Exchange Commission and federal prosecutors from Manhattan have also initiated probes into the firm. Both the SEC and the US Attorney’s Office for the Southern District of New York have declined to comment on the status of the investigations. As of now, neither the CFTC nor Mashinsky have responded to requests for comment on the matter.