CFTC Probe Finds Celsius and Mashinsky Violated Regulations
The Commodity Futures Trading Commission (CFTC) has reportedly concluded that crypto lender Celsius and its former CEO Alex Mashinsky violated U.S. rules prior to the company’s collapse. According to a July 5 Bloomberg report citing sources familiar with the matter, the CFTC’s enforcement division found that Celsius misled investors, failed to register with the regulator, and that Mashinsky broke a number of regulations.
The CFTC could file a case against the defunct crypto lender in U.S. federal court this month, if the majority of CFTC commissioners agree with the investigators’ findings. This comes on the heels of a multi-state investigation into Celsius that was launched on June 16 last year, just three days after the company abruptly halted user withdrawals on June 13.
The Securities and Exchange Commission (SEC) and federal prosecutors from Manhattan have reportedly launched probes into crypto-related companies, according to May court filings. Bloomberg notes that both the SEC and representatives from the U.S. Attorney’s Office for the Southern District of New York have declined to comment on the status of the investigations. Cointelegraph contacted the CFTC and Voyager Crypto CEO Alex Mashinsky but is yet to receive a response.
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