The founder of cryptocurrency lending platform Celsius Network was arrested on federal charges.
The logo of the crypto company Celsius is seen on the screen of a computer in an office.The founder of cryptocurrency lending platform Celsius Network was arrested Thursday on federal charges.
Instead, federal prosecutors alleged he was misrepresenting the company’s financial health before it collapsed into bankruptcy a year ago. "Defendants also falsely claimed that Celsius had 1 million active users on Celsius’s platform. It did not. Celsius’s own internal data—which was regularly shared with Mashinsky -- showed that the company only had approximately 500,000 users who had ever deposited crypto assets on the company’s platform and that many were no longer active users," the SEC lawsuit said.
According to the regulators, Celsius told the public a different story: "That [a]ll user funds are safe, and that it continue[s] to be open for business as usual."
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