Alex Mashinksy, co-Founder and former CEO of insolvent crypto lender Celsius was arrested on Thursday following an investigation into the company's collapse, Bloomberg reported citing a person familiar with the matter.

The U.S. Securities and Exchange Commission (SEC) accused the firm Mashinsky of securities fraud, in a lawsuit filed Thursday. The lending platform filed for bankruptcy last July, and crypto consortium Fahrenheit recently won a bid to acquire its assets.

Bloomberg reported earlier this month that Mashinsky and Celsius may also face a suit from the U.S. Commodity Futures Trading Commission (CFTC). The report said that investigators at the CFTC concluded that the bankrupt lender and its CEO broke the regulators' rules by misleading investors.

This is a developing story and will be updated.