(2023)
SEC v. Celsius Network
Year
2023
Criminal or Civil
Civil (SEC case)
Year Resolved
Ongoing as of April 2024 per public records
Jurisdiction (Court/State)
U.S. District Court for the Southern District of New York (SDNY)
Filed By
U.S. Securities and Exchange Commission (SEC)
Penalty/Fine (USD)
Unspecified
Lawsuit Overview
The SEC charged Celsius Network Limited and its founder, Alex Mashinsky, with violating federal securities laws by offering and selling unregistered securities through the Earn Interest Program, making false and misleading statements to investors about Celsius’s business model, financial health, and asset safety, and manipulating the market for Celsius’s crypto asset, CEL. The violations occurred from 2018 until Celsius halted its platform on June 12, 2022. Celsius consented to a permanent injunction against future securities law violations. Parallel criminal charges against Mashinsky and a non-prosecution agreement with Celsius were announced by the U.S. Attorney’s Office, and the CFTC also filed charges.
Category
Securities Fraud, Unregistered Securities Offering, Market Manipulation
Notable Individuals Involved
Alexander “Alex” Mashinsky (former CEO of Celsius Network Limited)
Investor Loss Estimate
Not explicitly stated in the post; Estimated at approximately $4.7 billion based on Celsius’s bankruptcy filings and public reports of customer losses
Final Outcome
Ongoing (Celsius consented to a permanent injunction; case against Mashinsky continues)
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