Bankrupt cryptocurrency firm Celsius Network (CEL) and its former CEO have been reported to have violated CFTC rules by deceiving their customers.
In a report by Bloomberg, citing sources familiar with the matter, the U.S. Commodity Futures Trading Commission (CFTC) inspectors Celsius Network And former CEO Alex MashinskyHe stated that the company violated the rules by misleading the investors.
Investigators who completed their review of the sunken cryptocurrency platform Celsius, lack of registration with the regulator He stated that the company and the CEO broke the law because of this.
In the statement made, Celsius and CEO Mashinsky, who made misleading statements to investors about possible risks and company operation. aim showing investigators, these violations before company bankruptcy He stressed that he was at the top of the line.
An inspector appointed by the US court drew attention to the following statements:
There were significant differences between what Celsius said and what he did, from the contract he described to his clients to the risks they took with their cryptocurrencies.
According to the testimony of people familiar with the matter, if the majority of the CFTC commissioners approve of this violation, the regulatory agency in this month Celsius front through federal court case can open.
A cryptocurrency investment consortium held an auction to buy the remaining assets of Celsius Network in May. Fahrenheit had won.