Yaron Shalem, the chief investment officer of Celsius, a crypto lending and borrowing platform, has been arrested in Israel on charges related to money laundering related to previous work.
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Shalem was one of eight people arrested in connection with Moshe Hogeg, the founder of the crypto phone company, Sirin Labs. The official Twitter page of the Israeli police said that the suspects had systematically committed investor fraud.
"Eight suspects were arrested on suspicion of committing fraudulent offenses in the field of cryptocurrencies, amounting to hundreds of millions of shekels, following an undercover investigation conducted in recent months at the National Fraud Investigation Unit at Blade 433 and the Diamond Unit of the Tax Authority. According to the suspicion, they acted systematically to commit investor fraud in a number of ventures in the field," said the Israeli police.
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They added that all of the suspects had given false presentations to investors and had pocketed tens of millions of shekels each.
"The suspects, each according to his share, pocketed tens of millions of shekels while presenting a false presentation to potential investors about allegedly profitable ventures."
Celsius reacted by putting out a tweet saying the company was aware of the situation, that the arrests were not related to Celsius and that the employee, Shalem, was now suspended from his role.
The court proceedings are scheduled to take place next week and will likely uncover the extent and severity of the charges against Shalem.