Celsius CEO Arrested In Wake Of Crypto Lender's Collapse, SEC Files Securities Fraud Lawsuit
Portfolio Pulse from Murtuza Merchant
Alex Mashinsky, the former CEO and co-founder of the now-defunct cryptocurrency lender Celsius (CRYPTO: CEL), was arrested following a Department of Justice inquiry into the company's downfall. The Securities and Exchange Commission (SEC) has filed a lawsuit against Mashinsky and Celsius for securities fraud. The Commodity Futures Trading Commission and Federal Trade Commission have also taken legal actions. The collapse of the TerraUSD (CRYPTO: LUNA) stablecoin and a downturn in the digital-asset markets left Celsius with a significant deficit, leading to its inability to handle customer withdrawal requests.
July 13, 2023 | 1:51 pm
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NEGATIVE IMPACT
Celsius, represented by CELUSD, is facing multiple legal actions including a securities fraud lawsuit by the SEC. The company's collapse has been attributed to the downturn in digital-asset markets and the collapse of TerraUSD.
The arrest of Celsius' CEO and the multiple legal actions against the company, including a securities fraud lawsuit by the SEC, are significant negative developments. These events, coupled with the company's financial troubles due to the collapse of TerraUSD and a downturn in the digital-asset markets, are likely to have a negative impact on the price of CELUSD in the short term.
CONFIDENCE 90
IMPORTANCE 100
RELEVANCE 100
NEGATIVE IMPACT
The collapse of the TerraUSD (LUNAUSD) stablecoin is cited as one of the reasons for the financial troubles of Celsius, leading to its inability to handle customer withdrawal requests.
The collapse of TerraUSD (LUNAUSD) is mentioned as one of the factors that led to the financial troubles of Celsius. This negative association could potentially impact the price of LUNAUSD in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50