Founder Alex Mashinsky Seeks Dismissal of FTC Case
In the ongoing Celsius bankruptcy case, founder Alex Mashinsky is asking the court to dismiss the Federal Trade Commission’s (FTC) allegations against him. Mashinsky’s legal team argues that the FTC’s claims lack the necessary elements to support a fraudulent activity charge. Celsius, once a prominent crypto lending platform, filed for bankruptcy due to challenging market conditions, leading to legal repercussions for Mashinsky. He was arrested in July after the FTC, the Department of Justice, and securities and commodities regulators launched a coordinated attack. The charges against him include multiple counts of fraud and price manipulation of the CEL token. Mashinsky’s defense team insists that the accusations are baseless and do not meet the criteria for a claim under the Gramm-Leach-Bliley Act. They also argue that he cannot be held responsible for violating the law as he resigned as CEO of Celsius. Furthermore, they emphasize that since Celsius is in bankruptcy and has already settled with the FTC, additional allegations against Mashinsky lack substantiation.
Former CTO Denies FTC Charges
In addition to Mashinsky, Celsius’ former Chief Technology Officer, Hanoch “Nuke” Goldstein, is contesting the FTC charges. Goldstein argues that he is unfairly implicated by the FTC due to his association with other Celsius executives. The basis of the FTC’s case against Goldstein is his retweeting of a blog post by Celsius, which he believes is being wrongly interpreted as complicity. Meanwhile, US Attorney Damian Williams has requested a temporary halt to the FTC proceedings to prevent prejudicing the parallel criminal case against Mashinsky. Although Mashinsky was released on a $40 million bond during the bankruptcy proceedings, a court order freezing his banking and real estate assets has further exacerbated his financial situation.
Hot Take: Mashinsky and Goldstein Fight Back Against FTC
In the ongoing legal battle between Celsius founder Alex Mashinsky and former CTO Hanoch Goldstein against the FTC, both individuals are pushing back against the allegations. Mashinsky’s legal team argues that the FTC’s claims lack the necessary elements for a fraudulent activity charge, emphasizing that he cannot be held accountable as he resigned from his position. Similarly, Goldstein denies the charges and believes he is unfairly implicated due to his association with other Celsius executives. The request for a temporary halt to the FTC proceedings by US Attorney Damian Williams shows the complexity of the case. As the legal saga continues, Mashinsky’s financial predicament worsens with his banking and real estate assets frozen. The outcome of these legal battles will have significant implications for the future of Celsius and its stakeholders.
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