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The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against bankrupt crypto lender Celsius Network and its founder and former CEO Alex Mashinsky, according to a court filing on Thursday.
Following the court filing, Alex Mashinsky was arrested on Thursday morning following an investigation into the company’s collapse, Bloomberg reported citing a person familiar with the case.
US SEC Sues Celsius Network, Ex-CEO Alex Mashinsky Arrested
According to the lawsuit filed on July 13, the US SEC sued Celsius Network and former CEO Alex Mashinsky for fraud, market manipulation, and violating securities laws.
Along with the US SEC, other US bodies such as the Dept of Justice (DOJ), Commodity Futures Trading Commission (CFTC), and Federal Trade Commission (FTC) filed separate lawsuits against Celsius Network and former CEO Alex Mashinsky.
The lawsuits add to a series of challenges for Celsius Network, which earlier this year was also sued by New York’s attorney general. Ex-CEO Alex Mashinsky was arrested by law enforcement on Thursday morning as multiple agencies filed lawsuits against him and the firm.
Also Read: XRP Attorney To Withdraw From US SEC Vs Ripple Lawsuit
The crypto industry has been on shaky ground after the SEC’s lawsuits against major crypto exchanges Binance and Coinbase last month raised risks of further regulatory challenges for the sector.
CEL token fell over 5% in the past 24 hours, with the price currently trading at $0.152. The 24-hour low and high are $0.148 and $0.161. Celsius Network recently announced to convert all altcoins to Bitcoin (BTC) and Ethereum (ETH), sparking concerns in the community over the selling of altcoins over a period of time.
The lawsuits could freeze BTC, ETH, and other tokens, with authorities finding a way to repay Celsius creditors.
Also Read: Terraform Labs Sells Crypto Ahead Of Ruling In US SEC Vs Terra And Do Kwon
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