"SEC Charges Celsius Network and Founder Alex Mashinsky for Violating Securities Laws"

The U.S Securities and Exchange Commission (SEC) today announced charges against Celsius Network Limited and its former CEO and founder, Alex Mashinsky, for violating provisions of the federal securities laws. According to the SEC's complaint, Celsius offered a crypto lending product called the Earn Interest Program which was an unregistered offering of securities and lacked the protection that registration would offer. Furthermore, Celsius and Mashinsky are accused of making false and misleading statements to investors of the Earn Interest Program and Celsius’s own Cryptocurrency asset security (CEL). Additionally, they allegedly engaged in market manipulation by artificially increasing and supporting the price of CEL. In parallel actions, the U.S Attorney’s Office for the Southern District of New York charged Mashinsky and entered a non-prosecution agreement with Celsius. The Commodity Futures Trading Commission also brought charges against both Celsius and Mashinsky. The SEC is seeking injunctions that would bar Mashinsky from certain activities and monetary relief consisting of civil penalties, disgorgement of profits, and prejudgment interest.