According to reports from Bloomberg citing people familiar with the matter, an investigation which was conducted by the Commodity Futures Trading Commission (CFTC) has concluded that Celsius, a prominent cryptocurrency financial services company, and its former Chief Executive Officer (CEO), Alex Mashinsky, violated multiple United States regulations before the companyās collapse in 2022.
The findings of the CFTC investigators shed light on a series of regulatory breaches committed by the defunct crypto lender under Mashinskyās watch. These violations, which occurred prior to the companyās demise, have raised concerns about the platformās compliance practices and their impact on the financial market. Additionally, the CFTCās findings suggest a systemic failure within Celsius to adhere to the necessary legal requirements and safeguards.
Also, the CFTC investigators found out that Celsius misled many investors, failed to register with the regulator, and its CEO violated several regulations. However, if most CFTC commissioners agree with the investigatorās findings, the agency would probably file a case against the already collapsed company in a U.S. Federal Court before the month ends.
Meanwhile, the CFTCās investigation into Celsius and its former CEO serves as a reminder of the importance of regulatory oversight in the financial industry.
It highlights the need for robust compliance measures to ensure the integrity and stability of the market. Notably, the findings emphasize the significance of holding individuals and companies accountable for their actions, particularly when they directly impact investors and the broader financial ecosystem.
Celsius Networkās Woes Continue
Recall that earlier in the year, an independent U.S. court-appointed examiner also revealed that Celsius misled its investors and occasionally used new customer funds to pay for other customersā withdrawals.
Likewise, the Securities and Exchange Commission (SEC), and Federal Trade Commission (FTC) have issued inquiries to the lender. Celsius had received a federal grand jury subpoena from the US District Court for the Southern District of New York and is facing intense regulatory scrutiny in āat leastā 40 states.
In yet another interesting turn of events, a Twitter investigator who goes by the pseudonym āCoffeezillaā alleged that the former CEO was still dumping enormous CEL tokens. The transactions were believed to have been executed from Mashinskyās multiple wallets.
Alex Mashinsky is such a cartoonish villain. After getting called out for stealing money from his company on the brink of bankruptcy, he starts dumping hundreds of thousands of dollars of $CEL tokens across multiple wallets.
He's dumping I write this, last trade 3 min ago) pic.twitter.com/Ugg9Q7yDTZ— Coffeezilla (@coffeebreak_YT) October 11, 2022