Breaking: Ex-Celsius CEO gearresteerd

The former CEO of insolvent crypto lending service Celsius, Alex Mashinsky, was arrested yesterday, according to Bloomberg. Here's what's known so far.

The information reportedly came from a person close to him who wishes to remain anonymous. The extent of his culpability in the company's demise is being investigated. The U.S. Securities and Exchange Commission (SEC) has also gotten involved and today filed a lawsuit against Mashinsky and his company. The SEC accuses him and Celsius of making fraudulent and unregistered securities offerings. The billions of dollars were collected illegally. In particular, the authority is targeting Celsius' "Earn Interest Program."

The U.S. Federal Trade Commission also sued Celsius today for $4.6 billion. The U.S. agency accused Celsius of advertising its marketplace as a secure service. Celsius, along with BlockFi, was one of the major lending services that paid high interest rates to users who lent their bitcoin there.

In the wake of the collapse of Terra Luna and its stablecoin TerraUSD, and the general collapse of the market, Celsius was declared bankrupt.