Former CEO of cryptocurrency lender Celsius Network, Alex Mashinsky, has been arrested and charged with fraud, according to the U.S. attorney in Manhattan. The charges against Mashinsky include securities fraud, commodities fraud, and wire fraud, as stated in the unsealed indictment. Roni Cohen-Pavon, Celsius’ former chief revenue officer, has also been charged with four criminal counts. Mashinsky has not yet issued a response to the allegations.
In addition to the criminal charges, the U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Mashinsky and Celsius for raising billions of dollars through the sale of unregistered crypto asset securities. The SEC alleges that they misled investors about the financial success of their business. This lawsuit comes after New York’s attorney general also sued Celsius Network earlier this year, adding to the company’s ongoing legal challenges.
The cryptocurrency industry has been facing uncertainty since the SEC filed lawsuits against major exchanges Binance and Coinbase Global last month. These legal actions have raised concerns about potential regulatory challenges in the sector.
Reporting by Niket Nishant in Bengaluru and Chris Prentice in New York; Editing by Shinjini Ganguli, Chizu Nomiyama and Jonathan Oatis
Credit: The Star : Tech Feed
