The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against bankrupt cryptocurrency lender Celsius Network and its founder and former CEO Alex Mashinsky, according to a lawsuit filed Thursday.

Following the trial, Alex Mashinsky was arrested Thursday morning following an investigation into the company’s collapse, Bloomberg reported citing a person familiar with the case.

US SEC sues Celsius Network, ex-CEO Alex Mashinsky arrested

According to the lawsuit filed July 13, the US SEC has charged Celsius Network and former CEO Alex Mashinsky with fraud, market manipulation and violating securities laws.

Along with the US SEC, other US agencies such as the Dept of Justice (DOJ), Commodity Futures Trading Commission (CFTC) and Federal Trade Commission (FTC) have filed separate lawsuits against Celsius Network and former CEO Alex Mashinsky.

The lawsuits add to a series of challenges for Celsius Network, which was also sued by the New York Attorney General earlier this year. Ex-CEO Alex Mashinsky was arrested by law enforcement on Thursday morning as multiple agencies filed lawsuits against him and the company.

Also Read: XRP Lawyer Withdraws From US SEC Vs Ripple Lawsuit

The crypto industry is on shaky ground after the SEC’s lawsuits against major crypto exchanges Binance and Coinbase last month put the sector at risk of further regulatory challenges.

CEL token is down more than 5% in the past 24 hours, with the price currently trading at $0.152. The 24-hour low and high are at $0.148 and $0.161. Celsius Network recently announced that it would convert all altcoins to Bitcoin (BTC) and Ethereum (ETH), raising community concerns about altcoin sales over a period of time.

The lawsuits could freeze BTC, ETH and other tokens, with authorities finding a way to repay Celsius’s creditors.

Also Read: Terraform Labs Sells Crypto Ahead Of Ruling In US SEC Vs. Terra And Do Kwon

Varinder has 10 years of experience in the Fintech sector, with more than 5 years dedicated to blockchain, crypto and Web3 developments. A technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in more than 5,000 news stories, articles and newspapers. With CoinGape Media, Varinder believes in the enormous potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.

The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication is not responsible for your personal financial loss.

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