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ARTICLE · 21 JULY 2023

Federal Agencies Coordinate Action Against Celsius For Fraud And Manipulation

Jones Day
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Federal agencies are taking a unified stand against fraud and manipulation in the digital asset ecosystem.

United StatesTechnology
David Aron
David Aron
Kevin Comeau
Kevin Comeau
J. Bruce McDonald
J. Bruce McDonald
David Peavler
David Peavler
Laura S. Pruitt
Laura S. Pruitt
Mark W. Rasmussen
Mark W. Rasmussen
Joshua B. Sterling
Joshua B. Sterling
Alexander Wilson
Alexander Wilson
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In Short

The Situation: In parallel federal actions, the Department of Justice ("DOJ"), Securities and Exchange Commission ("SEC"), Commodity Futures Trading Commission ("CFTC"), and Federal Trade Commission ("FTC") brought actions against Celsius Network LLC ("Celsius") and one of its founders and former chief executive officer, Alexander Mashinsky ("Mashinsky"), and other persons related to Celsius.

The Result: Federal agencies are taking a unified stand against fraud and manipulation in the digital asset ecosystem. Absent statutory regulation of digital assets, companies and retail users should expect that agencies with concurrent jurisdiction will continue to seek large penalties in their pursuit of fraud and manipulation in the digital asset ecosystem.

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