[Reuters]- Alex Mashinsky, the founder and former CEO of bankrupt cryptocurrency finance firm Celsius Community, was arrested Thursday morning, in accordance with courtroom filings with the U.S. Securities and Change Fee. sued by the board.

The SEC lawsuit alleges that Mashinsky and Celsius raised billions of {dollars} by the sale of unregistered cryptocurrency securities and misled traders concerning the financial success of his enterprise.

The lawsuit provides to a sequence of challenges for Celsius Community, which was additionally sued by the New York State Legal professional Normal earlier this 12 months.

The crypto business is in a risky state final month after the SEC lawsuit towards main crypto exchanges Binance and Coinbase (NASDAQ:) International elevated the danger of exposing the business to additional regulatory challenges. It’s in.