Founder of crypto lender Celsius Network arrested, charged with fraud
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Re: Founder of crypto lender Celsius Network arrested, charged with fraud
#2[flagged]
Re: Founder of crypto lender Celsius Network arrested, charged with fraud
#3[flagged]
The SEC never said Celsius wasn't dealing in securities.
Re: Founder of crypto lender Celsius Network arrested, charged with fraud
#4"Somebody is lying. Either the bank is lying or Celsius is lying.” - Alex Mashinsky
EDIT: omg at the almost $5B settlement
https://www.cnbc.com/2023/07/13/former-celsius-ceo-arrested-... ("The FTC also announced a $4.7 billion settlement against the exchange, which will not be paid until creditors and investors have been repaid in bankruptcy proceedings.")
Re: Founder of crypto lender Celsius Network arrested, charged with fraud
#5"Somebody is lying. Either the bank is lying or Celsius is lying.” - Alex Mashinsky EDIT: omg at the almost $5B settlement https://www.cnbc.com/2023/07/13/former-celsius-ceo-arrested-... ("The FTC also announced a $4.7 billion settlement against the exchange, which will not be paid until creditors and investors have been repaid in bankruptcy proceedings.")
Why not both?
Re: Founder of crypto lender Celsius Network arrested, charged with fraud
#6[flagged]
The criminal charges are from the DOJ and specifically include commodities fraud.
Nobody is going to be splitting hairs over SEC semantics because its not just about securities.
Re: Founder of crypto lender Celsius Network arrested, charged with fraud
#7[flagged]
The very next paragraph goes into specific details wrt/ how Celsius allegedly lied to their clients.
"The agency said Celsius engaged in "risky trading practices" and made uncollateralized loans, despite telling investors that it did not. The company also falsely claimed to have raised $50 million from selling its token, and claimed to have 1 million active users when in fact it had only around 500,000 depositors, many of whom were no longer active, the SEC said."
Securities or not, selling something while knowingly lying to buyers about what it is they are purchasing is fraud.
Re: Founder of crypto lender Celsius Network arrested, charged with fraud
#8Crypto is a fraudster's paradise.
Re: Founder of crypto lender Celsius Network arrested, charged with fraud
#9[flagged]
Mashinsky is a conman. This has nothing to do with the SEC being coy about whether BTC is a security and everything to do with Mashinsky lying to his customers about the risk involved in investing through Celsius. Here's a clip of him getting called out on his lies in a debate with a Bitcoin hater:
Re: Founder of crypto lender Celsius Network arrested, charged with fraud
#10[flagged]
That's completely irrelevant. It's not the job of the SEC to guide companies/people on what constitutes securities. Their job is to bring enforcement action if they believe the law is being broken.
If you want legal advice, get a lawyer. If you don't want an expensive court case to determine who is in the right, don't do business in areas without established case law.