- Regulator could file suit as early as this month
- It would require approval from all board members
- The charges not only concern the company as a whole, but ex-CEO Alex Mashinsky in particular
- Lenders believe he is responsible for the bankruptcy
FTC inspectors have concluded an investigation into cryptocurrency lender Celsius and former company management. They concluded that the firm’s investors had been deliberately misled. In doing so, Celsius violated industry laws.
This was reported by Bloomberg, citing its sources.. Unfortunately, the article does not specify what laws former CEO Alex Mashinsky violated.
We should remind you that last August the creditors’ committee said that it was his failed decisions that led to the company’s bankruptcy.. After an internal investigation, it was revealed that Mashinsky managed to withdraw about $10 million just before the liquidation process began.
As for possible charges from the CFTC, the regulator’s board will meet to discuss the matter later this month.. If all of its members agree with the findings of the investigation, it is possible that a lawsuit will be filed against Celsius.
It is not yet known exactly how this will affect the company’s restructuring process led by the Fahrenheit consortium.. The company had no comment on Bloomberg’s statement.
According to court documents, the SEC and Manhattan prosecutors are also investigating the organization. Earlier in the U.S., at the state level, there were repeated accusations of fraud against the company. Mashinsky himself does not consider himself guilty. He publicly stated this in May of this year.