he Commodities and Futures Trading Commission (CFTC) has determined that Celsius Network, and its former CEO, Alex Mashinsky, violated U.S. regulations. The findings by CFTC investigators suggest that Celsius and Mashinsky engaged in activities that were in contravention of established rules, potentially leading to legal repercussions for the company and its former CEO.
According to the CFTC, Celsius and Mashinsky breached specific U.S. rules, prompting the regulatory agency to pursue legal action. While the exact nature of the violations has not been explicitly stated, it is evident that the CFTC has gathered sufficient evidence to proceed with a case in federal court, with an expected filing to take place within this month.
The violations attributed to Celsius and Mashinsky have raised concerns among former investors who have already accused Wintermute, one of Celsius’s market makers, of market manipulation. This accusation further amplifies the seriousness of the situation and paints a picture of potential malpractice within the company’s operations.
As a result of the ongoing investigation and the subsequent findings, Celsius has been granted permission to initiate the liquidation of its altcoins. This move comes as the bankrupt crypto lender prepares to distribute funds to its creditors. By liquidating these alternative cryptocurrencies, Celsius aims to satisfy its outstanding obligations and address the financial implications arising from the violations.
