US FTC fines Celsius Network $4.7 billion for misappropriation
The United States Federal Trade Commission (FTC) has issued a $4.7 billion fine against bankrupt crypto lender Celsius Network. The judgment will be suspended to allow Celsius to return its remaining assets to consumers in bankruptcy proceedings.
Key points:
- Celsius and its affiliate companies are permanently banned from offering any product or service related to depositing, exchanging, investing, or withdrawing assets.
- FTC alleges that co-founders Alex Mashinsky, Shlomi Leon, and Hanoch Goldstein misappropriated over $4 billion in consumers’ assets.
- The case against the co-founders will proceed to federal court as they have not agreed to an FTC settlement.
- FTC accuses Celsius of making $1.2 billion in unsecured loans and falsely claiming to have a $750 million user insurance policy.
- The SEC, CFTC, and DOJ have also filed lawsuits against Celsius and its co-founders. Mashinsky has been indicted on seven fraud-related charges.
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Hot Take: The FTC’s hefty fine against Celsius Network highlights the importance of consumer protection in the crypto industry. It serves as a warning to other companies to operate ethically and transparently, putting the interests of their customers first.
