Alex Mashinsky Files Motion to Dismiss FTC Case
Alex Mashinsky, the founder of bankrupt crypto lender Celsius, has filed a motion to dismiss the case brought against him by the Federal Trade Commission (FTC). Mashinsky was charged with fraud and market manipulation in July, but his lawyers argue that the allegations do not support the claims made against him. They emphasize that the charges fail to meet the criteria required under the Gramm-Leach-Bliley Act. In addition, his lawyers point out that Celsius had already declared bankruptcy and reached a settlement agreement with the FTC. They also highlight that Mashinsky resigned from his role as CEO, weakening any claims of ongoing legal violations. Celsius CTO Hanoch “Nuke” Goldstein has also challenged the charges against him.
Temporary Halt of FTC Proceedings
U.S. Attorney Damian Williams has requested that the court temporarily halt the FTC proceedings to avoid any potential bias that could affect the ongoing criminal case involving Mashinsky. Mashinsky stepped down as CEO after Celsius filed for bankruptcy in July. He was released on a $40 million bond after his arrest and had his assets frozen by the court last month. Mashinsky had previously entered a plea of not guilty to charges of securities fraud, wire fraud, market manipulation, and other fraudulent schemes.
Hot Take: Mashinsky and Goldstein Challenge FTC Charges
Alex Mashinsky and Celsius CTO Hanoch “Nuke” Goldstein are fighting back against the charges brought by the FTC. Mashinsky’s lawyers argue that the allegations against him are baseless and fail to meet the criteria required under the law. They also highlight Celsius’ bankruptcy and Mashinsky’s resignation as CEO as factors that weaken the claims against him. Goldstein challenges the charges, claiming that he is being unfairly blamed due to his connections with other Celsius executives. Meanwhile, U.S. Attorney Damian Williams has requested a temporary halt of the FTC proceedings to avoid any potential bias in the ongoing criminal case. The legal battle between Mashinsky, Goldstein, and the FTC continues.
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