FTC’s Settlement on Celsius
In a recent development, the Federal Trade Commission (FTC) has imposed a fine on the now-defunct crypto lender Celsius for deceiving investors and misusing user deposits. However, amidst the bad news, there is a silver lining. The settlement between Celsius and the FTC has been suspended, allowing the company to return its remaining assets to consumers in bankruptcy proceedings.
- Celsius fined by FTC for alleged deception and misuse of user deposits
- FTC claims Celsius falsely asserted having enough assets to protect customer deposits
- Celsius and its affiliates are prohibited from managing customer assets indefinitely
- Three executives of Celsius have been charged
- Case against the executives will proceed in federal court as they haven’t settled
The FTC’s complaint against Celsius comes after a lawsuit filed by the Securities and Exchange Commission (SEC) against the bankrupt crypto lender. The SEC lawsuit accuses Celsius of making false and misleading statements to attract investors. Celsius and former CEO Alexander Mashinsky are named as defendants in this lawsuit.
Your Hot Take
This news is a double-edged sword for Celsius. While the FTC’s fine and charges against the executives are undoubtedly a blow, the suspension of the settlement offers a glimmer of hope for the company. It remains to be seen how Celsius will navigate the bankruptcy proceedings and address the allegations against them. This case serves as a reminder that even emerging technologies must adhere to the law and protect the interests of consumers.
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