CFTC Investors Conclude Celsius and Former CEO Defied Federal Authorities

Investigators from the Futures Trading Commission (CFTC) have allegedly concluded that the bankrupt crypto lending firm Celsius and Its CEO broke numerous United States rules before the company's bankruptcy in 2022.

A recent Bloomberg report revealed that the crypto lender had taken several wrong actions, including breaking regulatory rules. The report also showed that the United States Securities and Exchange Commission (SEC) refused to comment on the matter.

The CFTC Investigation Revealed that Alex Mashinsky and His Companies Broke Rules

The CFTC investigators declared that Celsius, and Alex Mashinsky, broke the rules before their crackdown in 2022. In the July 5 report, Bloomberg disclosed vital details about the situation surrounding the Celsius investigation case.

The report outlined that Celsius and its leader misled customers, refused to register with the US authority, and Mashinsky defied several regulations.

The sources noted that if most CFTC commissioners agree, the authority can sue the bankrupt crypto lender in federal court as early as this month. The investigator's conclusions add to the numerous actions against the now-collapsed crypto lender.

On January 5, the NY Attorney General, Letita James, filed a case against the CEO for misleading and duping users out of millions of dollars.

On June 16, 2022, securities authorities from five individual states in the United States commenced an investigation into the company three days after it terminated user withdrawals. Court filings have also shown that numerous federal authorities pressured the bankrupt company.

Furthermore, the United States Securities and Exchange Commission (SEC) and other Manhattan Federal prosecutors started probing the company, as stated in the court filings.

Due to these developments, the network's native CEL coin observed a 12% decline in price. As of press time, the token is trading at $0.15.

Bloomberg's report noted that representatives from the United States Attorney's offices for the Southern District of New York and the United States Securities and Exchange Commission have declined to comment on the status of the ongoing investigations.

Fahrenheit To Obtain Celsius Assets

Meanwhile, last month, a notable cryptocurrency consortium, Fahrenheit, won the bid to obtain all the digital assets in Celsius Network.In the bid, Fahrenheit beat its fellow bidder, NovaWulf, as the Blockchain Recovery Investment Consortium (BRIC) was enlisted as a backup.

The United States Bitcoin Corp., Ravi Kaza, Proof Group, Steven Kokinos, and Arrington Capital backed Fahrenheit's winning consortium.

In addition, court filings showed that Celsius Network's digital assets were initially worth $2 billion. Thanks to the successful bid, Fahrenheit will obtain Celsius' institutional loan portfolio, mining units, staked digital currencies, and other alternative investments.

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