CEL prices took another hit, with the US SEC filing a lawsuit against Celsius.

adminDecember 3, 2023

Celsius is currently undergoing Chapter 11 bankruptcy proceedings.
Last week, the U.S. CFTC found Celsius and Alex Mashinsky guilty of violating several laws before Celsius collapsed in 2022.
Alex Mashinsky was arrested and is scheduled to appear in court on Friday.

Celsius Network, a cryptocurrency lender that collapsed in 2022, is subject to enforcement action by the U.S. Securities and Exchange Commission (SEC).

According to a Bloomberg report, the SEC sued Celsius Network and its former CEO Alex Mashinsky. However, the report said the specifics of the complaint were not immediately available.

The lawsuit comes just days after the Commodity Futures Trading Commission (CFTC) ruled that Celsius and Masinsky violated numerous U.S. laws before the company collapsed last year.

Alex Mashinsky arrested in New York

Mashinsky was taken into custody Thursday morning as part of an investigation into the company’s collapse, according to the report. The former representative has denied the charges but is scheduled to be arraigned on Friday, July 14.

CFTC enforcement attorneys determined that Mashinsky violated several U.S. regulations and that Chelsea Network misled investors and neglected to register with the regulator.

The SEC and CFTC investigation began immediately after Chelsea publicly announced that the company had begun voluntary Chapter 11 proceedings.

In January 2023, New York Attorney General Letitia James sued Mashinsky, alleging that he made numerous “false and misleading statements” that caused investors to lose billions of dollars.

Celsius has $167 million in cash, according to the company. The funds will allow Celsius to support “certain operations during the restructuring process,” the company claims.

Celsius (CEL) price

The price of CEL, the native token of the Celsius Network, plummeted following news of the SEC lawsuit, just as the CFTC announced its findings.

At press time, CEL was trading at $0.1543, down 3.74% in the last 24 hours. However, after this news broke, the token hit a daily low of $0.1486. And although it has successfully recovered from the downturn following the CFTC’s conclusion, it is unclear whether it will fully recover from today’s downturn.