The United States’ Securities and Exchange Commission (SEC) is reportedly taking action against Celsius Network, one of the cryptocurrency lending firms that collapsed in 2022.
The securities regulator filed a lawsuit against Celsius’ former CEO Alex Mashinsky on July 13, according to a report by Bloomberg. Details of the complaint weren’t immediately available, the report said.
The action comes shortly after the Commodity Futures Trading Commission (CFTC) reportedly found that Celsius and Mashinsky broke several U.S. regulations before the company’s implosion last year.
On July 6, Bloomberg also reported that attorneys from the CFTC’s enforcement division found that Celsius misled investors, failed to register with the regulator, while Mashinsky broke several U.S. regulations.
The action comes amid Celsius officially announcing that it initiated voluntary Chapter 11 proceedings. Celsius has $167 million in cash on hand, the firm noted. According to Celsius, the funds will allow it to support “certain operations during the restructuring process.”
“This is the right decision for our community and company,” said Mashinsky said in the announcement. He added:
“We have a strong and experienced team in place to lead Celsius through this process. I am confident that when we look back at the history of Celsius, we will see this as a defining moment, where acting with resolve and confidence served the community and strengthened the future of the company.”
This is a developing story, and further information will be added as it becomes available.
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