Former Celsius CEO arrested, company agrees to pay $4.7 billion settlement
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Former Celsius CEO, Alex Mashinsky, was arrested on federal securities fraud charges and is accused of defrauding investors of billions. Mashinsky faces securities, commodities, wire fraud, and other charges in a Manhattan federal court. Celsius agreed to a $4.7 billion settlement with the FTC, one of the largest in its history. The settlement, however, will not be paid until customer assets are returned in bankruptcy proceedings. The SEC alleges that Celsius and Mashinsky misrepresented the company’s business model and fraudulently manipulated the price of its exchange token, CEL. The definition of a security and the SEC’s oversight over crypto markets is being debated, as the SEC complaint described Celsius’ exchange token as a security.
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