The SEC has sued Celsius Network and arrested its CEO

On the morning of July 13, Alex Mashinsky, the former CEO of the now-bankrupt crypto lender Celsius, was reportedly arrested. The news broke minutes after the United States Securities and Exchange Commission filed a lawsuit against the crypto lender on the same day.

The company’s token dropped 6% upon hearing the news.

The former CEO was arrested following an investigation into the company’s collapse. Celsius Network initiated the process of filing for bankruptcy on July 14 of the previous year. Investigators at the Commodity Futures Trading Commission found Mashinsky guilty of breaking numerous U.S. regulations prior to the company’s implosion in 2022.

The investigation into the troubled crypto lender began after the New York Attorney General sued Mashinsky on January 5. The lawsuit alleged that the former CEO misled investors and caused billions of dollars in losses.