According to a report from Bloomberg, which cited persons familiar with the situation, the Commodity Futures Trading Commission (CFTC) may file a lawsuit against failed cryptocurrency lender Celsius Network and its former CEO Alex Mashinsky as early as this month.According to the article, CFTC inspectors have determined that the failed lender and its CEO violated regulators’ regulations by deceiving investors.If the majority of the CFTC commissioners concur, the organization may bring legal action against the defendants.
The financial regulator of Vermont agreed with the independent examiner appointed by U.S. courts who found in January that Celsius occasionally operated in a way resembling a Ponzi scheme.
“In every key respect – from how Celsius described its contract with its customers to the risks it took with their crypto assets –how Celsius ran its business differed significantly from what Celsius told its customers,” the U.S. court-appointed examiner wrote.