Celsius says 'employee' suspended amid rumors of CFO arrest in Israel

Quick Take

  • Celsius Network said it has suspended an “employee” amid rumors of its CFO Yaron Shalem’s arrest in Israel.
  • Shalem is said to have been arrested in the Moshe Hogeg case. Both Shalem and Hogeg have worked together in the past.

Crypto lending firm Celsius Network said Friday that it has suspended an "employee" amid rumors of its CFO Yaron Shalem's arrest in Israel.

"We were recently made aware of a police investigation in Israel involving an employee," Celsius tweeted. "While this is in no way related to the employee's time or work at @CelsiusNetwork, the employee was immediately suspended. We have also verified that no assets were misplaced or mishandled."

The tweet came after The Block reached out to Celsius CEO Alex Mashinsky, confirming the arrest of Shalem. Mashinsky hasn't yet responded. While the tweet doesn't say the employee was Shalem, the suspension clearly involves him. CoinDesk confirmed in a report citing anonymous sources that Shalem was arrested in the Hogeg case.

Hogeg, the Israeli crypto entrepreneur behind the blockchain smartphone startup Sirin Labs and a host of other crypto startups, was arrested last week on charges including fraud, money laundering, and sexual offenses. Seven others, along with Hogeg, were arrested on fraud charges related to cryptocurrency projects.

Soon after the arrests, rumors began circulating that Shalem is two of the eight people, as both he and Hogeg worked together in the past at Hogeg's Singulariteam company. Shalem has also worked at Hogeg's Mobil company in the past, according to his LinkedIn profile.