[ad_1]
© Reuters. FILE PHOTO: Individuals exit the headquarters of the U.S. Securities and Alternate Fee (SEC) in Washington, D.C., U.S., Could 12, 2021. Image taken Could 12, 2021. REUTERS/Andrew Kelly
(Reuters) -Alex Mashinsky, the founder and former CEO of bankrupt cryptocurrency lender Celsius Community, was arrested and charged with fraud, the U.S. legal professional in Manhattan mentioned Thursday morning.
Mashinsky was charged with seven prison counts, together with securities fraud, commodities fraud and wire fraud, whereas Celsius’ former chief income officer, Roni Cohen-Pavon, was charged with 4 prison counts, in keeping with the indictment, which was unsealed on Thursday.
Mashinsky didn’t instantly reply to a request for remark.
The U.S. Securities and Alternate Fee additionally sued Mashinsky and Celsius on Thursday, in keeping with a courtroom submitting, alleging Mashinsky and Celsius raised billions of {dollars} via the sale of unregistered crypto asset securities and misled traders concerning the monetary success of his enterprise.
The lawsuit provides to a collection of challenges for Celsius Community, which earlier this 12 months was additionally sued by New York’s legal professional normal.
The crypto business has been on shaky floor because the SEC’s lawsuits in opposition to main crypto exchanges Binance and Coinbase (NASDAQ:) World final month raised dangers of additional regulatory challenges for the sector.
[ad_2]
Source link
