Celsius Agrees to Pay $4.7 Billion in FTC Settlement as CEO Is Arrested on Fraud Charges

Former Celsius CEO Alex Mashinsky was arrested Thursday on federal securities fraud charges, a source told CNBC, as the bankrupt crypto exchange agreed to pay a $4.7 billion settlement with government regulators.

The exchange was also charged by the SEC and CFTC with scheming to defraud investors out of billions. The $4.7 billion settlement is one of the largest in the FTC’s history, close to the record $5 billion fine levied against Meta in 2019, and highlights what the FTC described as repeated deceptions by Celsius and Mashinsky.

Federal prosecutors also charged Mashinsky with securities, commodities, and wire fraud, as well as various securities manipulation and fraud charges. If convicted, Mashinsky and a co-defendant, Roni Cohen-Pavon, face decades in prison.

Read the source article at NBC News