The CEL price suffers a further break-in, the US stock exchange supervision Sec is sufficient against Celsius

• Celsius is currently going through an insolvency procedure according to Chapter 11.
• Last week the US CFTC Celsius and Alex Mashinsky found that they had violated several laws before Celsius collapsed in 2022.
• Alex Mashinsky was arrested and will be brought to court on Friday.

Celsius Network, a cryptocurrency credit company that collapsed in 2022, is the goal of enforcement measures by the US IPO supervisory authority Securities and Exchange Commission (Sec).

According to a Bloomberg report, the Sec Celsius Network and its former CEO Alex Mashinsky sued. However, the report states that details of the complaint are not immediately available.

The lawsuit comes a few days after the Commodity Futures Trading Commission (CFTC) has found that Celsius and Mashinsky had violated a number of American laws before the company collapse last year.

Alex Mashinsky arrested in New York

According to the report, Mashinsky was arrested on Thursday morning in the course of an investigation of the collapse of the company. Although the former CEO had contested any misconduct, he will be charged on Friday, July 14th.

The lawyers of the CFTC enforcement department came to the conclusion that Mashinsky had violated several US regulations, while Celsius Network led investors and failed to register with the regulatory authority.

The investigation of the SEC and the CFTC immediately started when Celsius officially announced that the company had initiated a voluntary chapter 11 procedure.

The New York Attorney General Letitia James sued Mashinsky in January 2023 on the grounds that he had made numerous "false and misleading statements" that would have led to billions of bills for investors.

According to the company, Celsius has a cash stock of $ 167 million. The money will enable the money to support "certain operations during the restructuring process", the company claims.

Celsius (CEL) Prize

Just like then, when the CFTC announced its results, the price of CEL, the native token of Celsius Network, fell sharply according to the message from the SEC lawsuit.

At the time of printing, CEL was traded at $ 0.1543, which corresponds to a decline of 3.74 % in the last 24 hours. After the news became known, the token reached a daily low of $ 0.1486. And although it has successfully recovered from the decline as a result of the CFTC conclusion, it is not clear whether it will fully recover from today's decline.