The CFTC attorneys noted that Celsius crypto company violated several US rules, before the downfall of its business.
The Commodity Futures Trading Commission (CFTC) is the second dominant financial regulatory body in the US, which regulates the derivatives & commodity crypto market. The United States Securities Exchange Commission (SEC) is a highly strict regulatory body in America and sued huge numbers of crypto firms over the last two quarters of this year. Crypto entrepreneurs find CFTC as a good crypto regulatory body in the US.
On 5 July 2023, Bloomberg reported that an investigation by CFTC attorneys found that the Celsius platform violated several US rules & regulations.
If all the CFTC commissioners agree to initiate enforcement action against Celsius & its founder, former CEO Alex Mashinsky then the CFTC enforcement division will sue this month.
As per the report, Celsius misled its customers & Investors and also failed to register with all corresponding regulatory bodies in the country.
Earlier in the first month of this year, The New York Attorney General sued Celcius former CEO Alex over defrauding innocent crypto Investors.
Some reports noted that the CFTC agency conducted an investigation against Celsius on behalf of the New York Attorney General’s suit.
Celsius was a popular crypto lending platform, which always claimed to be the safest lending platform, indeed was not. Following the Terra (Luna) crypto empire downfall in May 2023, Celsius suspended fund withdrawal services on 13 June.
In the initial phase of the service interruption, the Celsius team refused to talk about the main issue but later just one month after the Celcius leadership filed bankruptcy under the Chapter 11 code in the U.S. Bankruptcy Court for the Southern District of New York.