According to Bloomberg, Alex Mashinsky, the former CEO of the cryptocurrency exchange Celsius Network, was detained this morning. According to the article, the criminal case is currently secret.
The information was released shortly after it was revealed that Mashinsky and Celsius Network are both defendants in a case brought by the U.S. Securities and Exchange Commission (SEC). The former CEO of Celsius is charged with securities fraud.
Since the firm filed for bankruptcy in July 2022 after losing billions of dollars in worth, Mashinsky and Celsius Network have come under fire. Bloomberg stated in early July that the Commodity Futures Trading Commission (CFTC) was also getting ready to file a complaint against Mashinsky.
Mashinsky is accused of making a misleading statement that Celsius was financially sound while suffering significant losses from hazardous crypto-lending ventures.
In September 2022, Mashinsky resigned as CEO of the company. The newest events in a tale that is still shaking the cryptocurrency sector include his arrest and the SEC’s lawsuit.
This news story is still developing. Watch this space for additional developments.
