Crypto soap: Celsius escapes huge fine

On Thursday, bankrupt crypto lender Celsius managed to get a spot in the crypto news after its former CEO Alex Mashinsky was arrested. The lending platform also received complaints from all corners of American regulators. A new chapter within the Celsius soap has started and today it manages to turn the spotlight again.

Crypto lender and CEO are the leapfrog

The New Jersey-based company and its ex-CEO were sued Thursday by the Securities and Exchange Commission (SEC), Federal Trade Commission (FTC) and Commodity Futures Trading Commission (CFTC). Mashinsky was at the same time by the American Department of Justice (DOJ) indicted on seven fraud-related charges and subsequently taken into custody.

However, Mashinsky is now released on bail. According to court documents he has agreed to a $40 million personal recognition guarantee. This agreement allows him to be released without paying bail, with the promise that he will appear in court for all required hearings.

The face of the bankrupt lender has also pleaded not guilty to all charges.

Celsius escapes fine

Yesterday, the news also came out that the FTC had imposed a fine of no less than $ 4.7 billion on the bankrupt platform. However, the judgment is suspended to “allow Celsius to return its remaining assets to consumers in its bankruptcy proceedings.”

According to the announcement From July 13, Celsius and its affiliates will be permanently barred from “offering, marketing or promoting any product or service that can be used to deposit, exchange, invest or withdraw assets” .

Celsius gave in one tweet pleased to have reached a resolution with US regulators. It also stressed that it remains focused on its restructuring process. The charges will most likely not affect the outcome of the bankruptcy proceedings and the value that will ultimately be distributed to customers.

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Celsius filed for bankruptcy in July last year, and crypto consortium Fahrenheit won the auction a while back to acquire the platform’s assets. What exactly the future will hold and when customers will finally be able to see part of their assets is still unclear for now.

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