Alex Mashinsky Files Motion to Dismiss FTC Case Against Him
Alex Mashinsky, the founder and former CEO of bankrupt crypto lender Celsius, has filed a motion in court asking the U.S. Federal Trade Commission (FTC) to dismiss the case against him “in its entirety.” Mashinsky, along with former Celsius executives Leon and Goldstein, was charged by the FTC on July 13 for misleading customers into transferring cryptocurrency assets to Celsius with false promises of “safer” and “no risk” returns.
Accusations Not Meeting Claim Requirements
The FTC made various claims against Mashinsky, alleging that he knowingly deceived customers by presenting Celsius as a safer alternative to banking when it was not. In a court filing on September 11, Mashinsky’s legal team argued that the allegations, including the claim that the former CEO made fraudulent misstatements to obtain customer information, lack sufficient evidence. They also pointed out that Mashinsky resigned from his position as CEO of Celsius in September 2023 and that Celsius is now bankrupt and has entered into a settlement agreement with the FTC.
The Troubled Mashinsky
Mashinsky, who co-founded Celsius in 2017, currently faces criminal and civil charges from multiple agencies related to the company’s collapse. The Department of Justice (DOJ) charged him and a former Celsius Chief Revenue Officer with multibillion-dollar fraud and market manipulation schemes. Additionally, the U.S. Securities and Exchange Commission (SEC) has accused Mashinsky of CEL token price manipulation. While he was released on a $40 million bond, the legal troubles for Mashinsky continue.
Hot Take: Mashinsky’s Legal Battle Continues as He Fights to Dismiss FTC Case
Alex Mashinsky, the former CEO of Celsius, is fighting against the charges brought by the FTC. His legal team argues that the allegations lack evidence and fail to meet claim requirements. Mashinsky has resigned from his position and the company is now bankrupt. However, his troubles don’t end there. He also faces criminal and civil charges from the DOJ and SEC for fraud and market manipulation. It remains to be seen whether Mashinsky’s motion to dismiss the FTC case will be successful, but his legal battle continues.
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