Attorneys in the regulator's enforcement unit determined
that Celsius misled investors and should have registered with the regulator,
according to the report, citing people familiar with the matter.
If majority of the CFTC's commissioners agree with the
conclusion, the agency can file a case in federal court as soon as this month,
the report said.
Celsius and the CFTC did not immediately respond to a
Reuters request for comment.
Last year's market turmoil after the collapse of TerraUSD
led to the failure of several major crypto companies including Celsius Network.
The company filed for bankruptcy last year, leaving its customers with large
losses.
As part of Celsius' bankruptcy case, an independent examiner
was appointed to investigate accusations that Celsius had operated as a Ponzi
scheme and report on how it handled crypto assets.
New York's attorney general sued Celsius founder Alex
Mashinsky early this year, claiming he defrauded investors out of billions of
dollars in digital currency by concealing the failing health of the lending
platform.
Before freezing customer withdrawals and filing for
bankruptcy last year, Celsius was one of the biggest crypto lending platforms,
with nearly $25 billion in assets under
management in October 2021. By the end of 2021, the firm had reached a $3
billion valuation. © Reuters
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