Investigators from the Commodity Futures Trading Commission have reportedly concluded that bankrupt crypto lender Celsius and its former CEO Alex Mashinsky broke U.S. rules before the company collapsed.
According to a July 5 report from Bloomberg, citing sources familiar with the matter, the attorneys from the CFTC’s enforcement division found that Celsius misled investors, failed to register with the regulator and that Mashinsky broke a number of regulations.
The CFTC could reportedly file a case against the collapsed crypto lender in U.S. federal court sometime this month, if the majority of the CFTC commissioners agree with the investigators’ findings.
The CFTC’s findings add to a growing pile of investigations into the now-defunct crypto lending platform. On June 16 last year, securities regulators from five different U.S. states opened an investigation into Celsius three days after the firm abruptly halted user withdrawals on June 13.
The Securities and Exchange Commission (SEC) along with federal prosecutors from Manhattan also launched a series of probes into the firm, according to May court filings. Bloomberg notes that both the SEC and representatives from the U.S. Attorney’s Office for the Southern District of New York have declined to comment on the status of the investigations.
Cointelegraph contacted the CFTC and Mashinsky but is yet to receive a response.
This is a developing story, and further information will be added as it becomes available.
