Celsius Could Face Lawsuit from CFTC For Violating Rules
The sources added that if a majority of the CFTC Commissioners agree to this, the agency could file a case in the federal court this month. One of the sources said that attorneys from the enforcement unit have determined that Celsius misled investors without registering with the regulatory. Also, CEO Alex Mashinsky flouted major rules. advertisement Crypto lender Celsius Networks gained massive popularity during the bull run of 2021 by offering loans and paying hefty interest on virtual token deposits. Back then, Mashinsky claimed that these deposits were as safe as that with banks. However, last year’s blow-up of the Terra ecosystem led to a widespread contagion in the crypto space with Celsius being a major victim of it. Besides, it also exposed several risky bets from Celsius . Soon after, Celsius Networks faced major withdrawals from the platform finally leading them to bankruptcy. Legal Action Against Celsius Networks After a major blow-up l...