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Celsius founder Mashinsky to face civil fraud lawsuit, as Revolut plans to cease US operations

Celsius founder Mashinsky to face civil fraud lawsuit, as Revolut plans to cease US operations
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Alex Mashinsky, founder of Celsius, faces lawsuit: Photo by Bruno de Carvalho/SOPA Images/Shutterstock

Have a great Saturday!

Alex Mashinsky, founder of bankrupt crypto lender Celsius, is probably not, as he must now face a lawsuit in New York alleging civil fraud. UK-based fintech firm Revolut has decided to cease US operations amid regulatory uncertainty and three Democratic senators have asked the Biden administration for information about its attempts to disrupt North Korea’s use of stolen crypto to fund its nuclear program. Read on!

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Celsius founder must face lawsuit

Alex Mashinsky, founder of bankrupt crypto lender Celsius Network, must face a lawsuit by the New York attorney general accusing him of civil fraud, a state court judge ruled, according to a report by Reuters.

Justice Margaret Chan said allegations that Mashinsky defrauded investors by concealing Celsius risks, including investment losses, were sufficient to proceed.

Revolut ending US crypto services

Revolut told US-based customers it will cease buy orders for digital assets as of Sept. 2, citing the “regulatory environment and the uncertainties around the crypto market in the US,” Fortune reported.

The changes will affect only US users, who account for less than 1% of Revolut’s worldwide customer base.

North Korea crypto thefts cited

Three Democratic senators asked the administration of US President Joe Biden to share more intelligence on its attempts to impede North Korea’s use of billions of dollars worth of stolen crypto that funds its nuclear program, the Wall Street Journal reported.

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Senators Chris Van Hollen, Elizabeth Warren, and Tim Kaine said Pyongyang’s increasing use of cryptocurrency to evade sanctions is a serious national security threat.

HashKey plans digital assets fund

HashKey Capital plans to raise at least $100 million and launch a liquid digital assets fund on Sept. 1, CoinDesk reported.

The digital asset financial services firm will be regulated by the Hong Kong Securities and Futures Commission, as the city introduced a new regulatory regime on June 1.

GameStop NFT wallet to close

GameStop will shutter its NFT wallet after about a year, citing “regulatory uncertainty of the crypto space” as the reason, Engadget reported,

An alert on the company’s website says GameStop Wallet support will end Nov. 1.

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