Alex Mashinsky's Lawyers Seek Dismissal of FTC Case Against Former Celsius CEO

Lawyers representing Alex Mashinsky, former CEO of Celsius Network, argue for the dismissal of the FTC case against him. Mashinsky and his legal team believe that the allegations lack evidence and fail to meet the requirements of the Gramm-Leach-Bliley Act.

Posted 8 months ago in Blockchain


Alex Mashinsky, founder and former CEO of Celsius Network

Alex Mashinsky, the founder and former CEO of bankrupt crypto lending company Celsius, is seeking to have the Federal Trade Commission (FTC) drop its case against him “in its entirety.” Mashinsky's lawyers from Yankwitt LLP argued that the allegations do not support a claim that he knowingly made misstatements to fraudulently obtain customer information from a financial institution.

Mashinsky's legal team further argued that the accusations do not satisfy the requirements under the Gramm-Leach-Bliley Act (GLBA), which mandates that knowingly false statements be made to fraudulently obtain customer information. They also pointed out that Mashinsky resigned from his position as CEO of Celsius in September 2023 and that the company is already in bankruptcy and has entered into a settlement agreement with the FTC.

The FTC case, filed in July 2023, also included Celsius’ co-founders Shlomi Daniel Leon and Hanoch “Nuke” Goldstein. Goldstein is contesting the charges brought against him, stating that the FTC is unjustly attributing responsibility to him based on his association with other executives from Celsius.

U.S. Attorney Damian Williams has requested the court to temporarily suspend the FTC proceedings to prevent any potential prejudice to the concurrent criminal case involving Mashinsky, who has pleaded not guilty to multiple counts of fraud and price manipulation of CEL, Celsius' native token.

Celsius Network, once a major player in the crypto industry, oversaw $25 billion in assets under management as of October 2021. However, the company experienced a downturn during the crypto market crash, leading to its bankruptcy filing in July 2022.

Last updated 9/12/2023, 8:55:27 PM

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