- The former Celsius boss has made a bold move against the FTC.
- Mashinsky is requesting the consumer watchdog to dismiss its case against him.
- Multiple agencies are still pursuing cases against the former CEO.
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.”
On July 13, the FTC charged Mashinsky in the company of former Celsius executives Leon and Goldstein for duping customers into transferring cryptocurrency assets to Celsius with a promise of “safer” and “no risk” returns.
Accusations Not Satisfying Claim Requirements
In its case against Mashinsky, the FTC made several claims against the former CEO and his executive colleagues, asserting that they knowingly misled customers by touting Celsius as a safer alternative to banking, affirming the lender was anything but that embodiment.
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In a September 11 court filing, Mashinsky’s legal team contended this, among other allegations by the consumer watchdog, stating that they do not support a claim that the former CEO knowingly made misstatements to obtain customer information from a financial institution fraudulently.
“In addition to the fact that Celsius is in bankruptcy and entered into a settlement agreement with the FTC…, the Complaint cannot substantiate a claim that Mashinsky ‘is violating’ or is ‘about to violate’ the law because Mashinsky resigned from his position as CEO of Celsius on September 27, 2023,” the lawyers stated.
The Troubled Mashinsky
Mashinsky, who co-founded Celsius in 2017, is facing criminal and civil charges from multiple agencies concerning the company’s fall, which resulted in his July 13 arrest.
The DOJ charged Mashinsky and a former Celsius Chief Revenue Officer with multibillion-dollar fraud and market manipulation schemes.
Although the former CEO was released from custody on a $40 million bond, in a parallel case, the U.S. Securities and Exchange Commission (SEC) charged him with allegations of CEL token price manipulation.
Read how SEC’s Gary Gensler blasted the crypto industry for “wide-ranging non-compliance”:
Gary Gensler Slams Crypto Yet Again as Senate Hearing Looms
In other news, Binance.US says the SEC is “unduly burdensome.” Read more here:
Binance.US Condemns SEC’s “Overboard” Deposition Request
