Failed crypto lender Celsius Community and its former CEO Alex Mashinsky may very well be named in a case introduced by the Commodity Futures Buying and selling Fee (CFTC) as early as this month, in keeping with a report from Bloomberg, citing folks aware of the matter.
The report says that investigators on the CFTC have concluded that the bankrupt lender and its CEO broke the regulators’ guidelines by deceptive traders, the report added. If a majority of the CFTC’s commissioners agree, the company may file a case in opposition to them.
An e mail to Celsius’ press inbox went unanswered. CFTC didn’t instantly reply to CoinDesk’s request for remark.
In January, an unbiased examiner appointed by U.S. courts decided that at occasions, Celsius operated in a way much like a Ponzi scheme, an opinion shared by Vermont’s monetary regulator.
“In each key respect – from how Celsius described its contract with its clients to the dangers it took with their crypto belongings –how Celsius ran its enterprise differed considerably from what Celsius advised its clients,” the U.S. court-appointed examiner wrote.