Celsius Founder Reportedly Sold CEL Holdings Before Arrest, Hit with $4.7 Billion Fine
Alex Mashinsky, the founder of Celsius, a popular cryptocurrency lending platform, has been embroiled in controversy as details surrounding his recent arrest and the Securities and Exchange Commission’s (SEC) lawsuit against him continue to emerge. According to reports by wallet tracker @lookonchain, Mashinsky had allegedly dumped a significant amount of Celsius (CEL) tokens as early as the beginning of this winter.
In February, Mashinsky reportedly sold his entire stash of 90,000 CEL tokens for 48,018 USDC stablecoins. These stablecoins were then moved to the Coinbase exchange. As of now, Mashinsky’s wallets allegedly contain a mere $5,000 worth of cryptocurrencies.
As previously reported by U.Today, Mashinsky was arrested today as part of the SEC’s lawsuit against him and Celsius, which filed for bankruptcy and ceased operations last year. The company’s downfall coincided with the crash of Terra’s LUNA coin and UST stablecoin in May. Celsius struggled to cope with a massive influx of customers withdrawing their funds. Prior to the collapse, Celsius had enticed users with high interest rates of up to 17% for their crypto deposits.
Bloomberg Terminal has reported that the SEC accuses Mashinsky and Celsius of manipulating the price of CEL in the cryptocurrency market. In response to these allegations, the Federal Trade Commission (FTC) has banned Celsius Network from trading and imposed a staggering $4.7 billion fine on the company.
It is evident that the ongoing legal battle and the resulting fines have taken a toll on both Mashinsky and Celsius. The arrested founder’s dwindling cryptocurrency holdings reflect the mounting challenges he and his company are facing. The SEC’s allegations of market manipulation have dealt a severe blow to Celsius, halting its trading activities and imposing a record-breaking penalty.
As the news unfolds, it is crucial to maintain a balanced view of the situation, considering multiple perspectives and opinions. The legal proceedings against Mashinsky and Celsius will likely have far-reaching implications for the cryptocurrency industry. It remains to be seen how this case will develop and how it will impact the broader market.
In conclusion, the arrest of Celsius founder Alex Mashinsky and the subsequent lawsuit by the SEC have sent shockwaves through the cryptocurrency community. Mashinsky’s alleged sale of CEL tokens, coupled with the reported manipulation of the token’s price, has brought Celsius and its founder under scrutiny. The FTC’s trading ban and massive fine are further indicative of the serious consequences faced by the embattled company. As the legal battle unfolds, the cryptocurrency market braces for potential ripple effects, highlighting the need for increased regulatory scrutiny in the industry.
