Alex Mashinsky Requests Dismissal of FTC Charges
Alex Mashinsky, former CEO of crypto platform Celsius, has filed a motion to dismiss the charges brought against him by the Federal Trade Commission (FTC). Mashinsky’s legal team argues that the FTC has failed to provide evidence that he is currently or will soon be in violation of the law. This argument is based on the fact that Mashinsky resigned as CEO of Celsius on September 27, 2023. Other former executives of Celsius, including co-founders Shlomi Daniel Leon and Hanoch “Nuke” Goldstein, are also facing charges and seeking their dismissal. The FTC alleges that Celsius engaged in deceptive practices, luring consumers into depositing cryptocurrencies with false guarantees of security.
FTC Charges and Celsius Settlement
The FTC’s lawsuit against Celsius focuses on allegations of deceptive practices by the platform and its top executives, including Mashinsky. The commission claims that users were misled into depositing their cryptocurrencies with Celsius, with false assurances of security. Trust, a vital aspect of financial transactions, would be severely compromised if these allegations are proven true. Celsius has already reached a settlement with the FTC, agreeing to pay $4.7 billion. However, due to Celsius’s ongoing bankruptcy proceedings, the FTC has postponed enforcing the payment to allow for the return of remaining assets to clients.
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