As the SEC continues to increase its pressure on the cryptocurrency industry, the SEC's latest target has been the bankrupt crypto platform Celsius.
The SEC has filed a lawsuit against Celsius Network and its CEO, Alex Mashinsky, Bloomberg reported. The case was filed this morning in a federal court in Manhattan.
It was stated that CEO Alex Mashinsky was arrested this morning.
It was stated that the CEO gave misleading information about the situation of the company and defrauded investors in order to keep the bankrupt company alive and to provide more fund inflows.
The SEC is seeking injunctive relief, restitution and jail time against Celsius and the CEO's assets, it said.
BREAKING: The Securities and Exchange Commission sued Alex Mashinsky, the former chief executive officer of bankrupt crypto lender Celsius Network. The regulator filed the lawsuit this morning in federal court in Manhattan. @avabmorrison
— Ally Versprille (@allyversprille) July 13, 2023
After the news of the lawsuit, the CEL price lost 7% in a short time.
As it is known, the SEC filed a lawsuit against the giants of the crypto money industry Binance and Coinbase in early June.
In these cases, the SEC claimed that some of the altcoins traded on the exchanges were securities, stating that Binance and Coinbase violated securities laws.