SEC Sues Celsius: Crypto Lending Firm’s CEL Price Plummets
• US SEC has filed a lawsuit against Celsius Network and former CEO Alex Mashinsky for breaking several laws prior to the company’s collapse last year.
• Alex Mashinsky has been arrested and will be arraigned on Friday.
• The price of CEL, Celsius Network’s native token, has dropped sharply following the news of the SEC lawsuit.
SEC Files Lawsuit Against Celsius Network
The US Securities and Exchange Commission (SEC) has sued Celsius Network and its former CEO Alex Mashinsky for breaking several laws prior to the company’s collapse last year. According to a Bloomberg report, specifics of the complaint were not immediately available but comes days after the Commodity Futures Trading Commission (CFTC) determined that Celsius and Mashinsky had violated a number of American laws.
Alex Mashinsky Arrested
Alex Mashinsky was detained on Thursday morning as a result of an investigation into the company’s collapse by CFTC enforcement division lawyers. Although he denied any wrongdoing, he will be arraigned on Friday, July 14th. The New York Attorney General Letitia James in January 2023 also sued him alleging that he made numerous “false and misleading statements” which led to investors losing billions.
Celsius Under Chapter 11 Proceedings
Celsius formally announced that it had begun voluntary Chapter 11 proceedings when investigations started immediately afterwards. According to the company, it currently has $167 million in cash on hand which will enable it to support “certain operations during the restructuring process“.
CEL Price Drops Sharply
As was the case when the CFTC announced its findings, the price of CEL , Celsius Network’s native token, has dropped sharply following news of SEC lawsuit being filed against them. At press time, CEL was trading at $0.1543, down 3.74% in the last 24 hours with a daily low of $0.1486 after news broke out.
Celsius is facing multiple lawsuits from different regulatory bodies in America for breaking certain laws prior to their collapse last year with their former CEO Alex Mashinsky arrested and awaiting arraignment on Friday this week while CEL prices take another hit dropping sharply following news about SEC filing lawsuit against them