Celsius SEC CFTC Ftc Charges (2023) event

Event · PageRank 0.0000

Overview

On July 13, 2023, US authorities took coordinated action against Celsius Network and its founders. The SEC, CFTC and FTC each brought civil actions, while the Department of Justice indicted co-founder and former CEO Alex Mashinsky, who was arrested in New York on seven counts including securities fraud, commodities fraud, wire fraud and conspiracy to manipulate the price of the CEL token. Regulators alleged Celsius marketed itself as a safe, bank-like place to hold digital assets while funding promised yields through increasingly risky strategies, including uncollateralised lending and DeFi positions. Celsius agreed to an FTC settlement permanently banning it from handling consumer assets, with a $4.7 billion judgment suspended so remaining assets could be returned through the bankruptcy.

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Frequently asked questions

Which agencies acted against Celsius and when?

On July 13, 2023, the FTC, SEC, CFTC and the Department of Justice all took action against Celsius Network and its executives.

What was Alex Mashinsky charged with?

He was arrested and charged with seven counts, including securities fraud, commodities fraud, wire fraud and conspiracy to manipulate the price of Celsius's CEL token.

What did the FTC settlement require?

Celsius was permanently banned from handling consumers' assets and from offering products for depositing, exchanging, investing or withdrawing assets, and agreed to a $4.7 billion judgment that was suspended to allow remaining assets to be returned to customers in bankruptcy.