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The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit towards bankrupt crypto lender Celsius Network and its founder and former CEO Alex Mashinsky, in keeping with a court docket submitting on Thursday.

Following the court docket submitting, Alex Mashinsky was arrested on Thursday morning following an investigation into the corporate’s collapse, Bloomberg reported citing an individual accustomed to the case.

US SEC Sues Celsius Network, Ex-CEO Alex Mashinsky Arrested

According to the lawsuit filed on July 13, the US SEC sued Celsius Network and former CEO Alex Mashinsky for fraud, market manipulation, and violating securities legal guidelines.

Along with the US SEC, different US our bodies such because the Dept of Justice (DOJ), Commodity Futures Trading Commission (CFTC), and Federal Trade Commission (FTC) filed separate lawsuits towards Celsius Network and former CEO Alex Mashinsky.

The lawsuits add to a collection of challenges for Celsius Network, which earlier this 12 months was additionally sued by New York’s lawyer basic. Ex-CEO Alex Mashinsky was arrested by regulation enforcement on Thursday morning as a number of companies filed lawsuits towards him and the agency.

Also Read: XRP Attorney To Withdraw From US SEC Vs Ripple Lawsuit

The crypto business has been on shaky floor after the SEC’s lawsuits towards main crypto exchanges Binance and Coinbase final month raised dangers of additional regulatory challenges for the sector.

CEL token fell over 5% up to now 24 hours, with the value at present buying and selling at $0.152. The 24-hour high and low are $0.148 and $0.161. Celsius Network just lately introduced to convert all altcoins to Bitcoin (BTC) and Ethereum (ETH), sparking considerations locally over the promoting of altcoins over a time period.

The lawsuits may freeze BTC, ETH, and different tokens, with authorities discovering a approach to repay Celsius collectors.

Also Read: Terraform Labs Sells Crypto Ahead Of Ruling In US SEC Vs Terra And Do Kwon

Varinder has 10 years of expertise within the Fintech sector, with over 5 years devoted to blockchain, crypto, and Web3 developments. Being a expertise fanatic and analytical thinker, he has shared his data of disruptive applied sciences in over 5000+ information, articles, and papers. With CoinGape Media, Varinder believes within the big potential of those revolutionary future applied sciences. He is at present overlaying all the newest updates and developments within the crypto business.

The offered content material could embody the non-public opinion of the writer and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The writer or the publication doesn’t maintain any duty in your private monetary loss.