Alex Mashinsky Seeks Dismissal of FTC Case Against Him
Alex Mashinsky, the founder and former CEO of crypto lending company Celsius, is requesting that the Federal Trade Commission (FTC) drop its case against him entirely. In a court filing, Mashinsky’s lawyers argue that the allegations do not meet the requirements for a claim under the Gramm-Leach-Bliley Act (GLBA), which mandates knowingly false statements to fraudulently obtain customer information from a financial institution. They also contend that Mashinsky’s resignation from his position as CEO in September 2023 undermines the claim that he is violating or about to violate the law. The FTC lawsuit, filed in July 2023, also names Celsius co-founders Shlomi Daniel Leon and Hanoch “Nuke” Goldstein, with Goldstein contesting the charges against him.
Celsius Network’s Downfall
Celsius Network was once a prominent player in the crypto asset landscape, boasting $25 billion in assets under management. However, the company filed for bankruptcy during the crypto market downturn, and Mashinsky was arrested in July 2023. He pleaded not guilty to charges of fraud and manipulating the price of CEL, Celsius’ native token. Mashinsky resigned as CEO in September 2022 and has faced lawsuits from the U.S. Department of Justice, the Securities and Exchange Commission, and the Commodity Futures Trading Commission. Last month, the DOJ froze Mashinsky’s assets, including bank accounts and a property in Texas.
Hot Take: Mashinsky Challenges FTC’s Case
Alex Mashinsky and his legal team are pushing back against the Federal Trade Commission, seeking a dismissal of the allegations made against him. The lawyers argue that the accusations do not meet the legal requirements and that Mashinsky’s resignation from Celsius undermines any claims of ongoing violation. Celsius Network, once a prominent player in the crypto space, faced financial difficulties and ultimately filed for bankruptcy. Mashinsky’s arrest and subsequent legal battles have further added to the company’s downfall. As the case unfolds, it remains to be seen how the courts will respond to Mashinsky’s request for dismissal and the potential impact it may have on the broader legal proceedings against Celsius and its former executives.
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