The United States Securities and Exchange Commission (SEC) has reportedly taken legal action against Celsius Network, a cryptocurrency lending firm that faced a collapse in 2022. According to Bloomberg, the SEC filed a lawsuit against Celsius’ former CEO, Alex Mashinsky, on July 13. The details of the complaint are yet to be disclosed.
This development follows a previous investigation by the Commodity Futures Trading Commission (CFTC), which found that Celsius and Mashinsky had violated several U.S. regulations prior to the company’s downfall.
Earlier reports from Bloomberg stated that attorneys from the CFTC’s enforcement division discovered that Celsius misled investors and failed to register with the regulatory body. Additionally, it was revealed that Mashinsky had also violated multiple U.S. regulations.
In response to these findings, Celsius officially announced the initiation of voluntary Chapter 11 proceedings. The firm claimed to have $167 million in cash reserves, which would allow them to support specific operations during the restructuring process.
In response to the SEC’s lawsuit, Mashinsky expressed confidence in Celsius’ ability to navigate through this challenging period. He believed that the company’s resolution and confidence in addressing the situation would ultimately benefit the community and strengthen its future.
This is an ongoing story, and as more information becomes available, further updates will be provided.