Former CEO of the crypto platform Celsius, Alex Mashinsky, has requested the dismissal of charges against him in the high-profile Federal Trade Commission (FTC) case. Mashinsky’s legal team argues that the FTC cannot substantiate a claim that he is violating the law, as he resigned from Celsius on September 27, 2023 (Bitcoinist). This request for dismissal is part of a court filing submitted by Mashinsky’s legal team, and it highlights the importance of timing in legal proceedings, especially in high-stakes cases (Bitcoinist).
It’s essential to note that Mashinsky is not the only former executive from Celsius facing scrutiny from the FTC. Co-founders Shlomi Daniel Leon and Hanoch “Nuke” Goldstein are also involved in the lawsuit. Goldstein is challenging the FTC charges and seeking their dismissal, similar to Mashinsky (Bitcoinist).
The FTC’s lawsuit against Celsius revolves around allegations of deceptive practices by the firm and its top executives, including Mashinsky. The commission claims that consumers were enticed to transfer their cryptocurrencies onto the Celsius platform through false guarantees of security. This alleged breach of trust is significant, as trust is vital in the crypto realm and any financial transaction (Bitcoinist).
Celsius has already reached a settlement agreement with the FTC, agreeing to pay $4.7 billion. However, the FTC has delayed enforcing the payment due to Celsius’s ongoing bankruptcy proceedings. This decision aims to prioritize the return of assets to the platform’s clientele (Bitcoinist).
In conclusion, Alex Mashinsky, former CEO of Celsius, has requested the dismissal of charges against him in the FTC case. This request is based on the argument that the FTC cannot prove any violations of the law since Mashinsky resigned from Celsius. The lawsuit also involves other former executives from Celsius, and the allegations center around deceptive practices and breaches of trust by the firm. Celsius has reached a settlement with the FTC but awaits enforcement of the payment due to ongoing bankruptcy proceedings (Bitcoinist).
References:
– Bitcoinist: [Link to credible source]
– Bitcoinist: [Link to credible source]
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About the author - J-S Tremblay
I've been involved in the cryptocurrency world since 2016 and trading since 2019. I started Moon and Lambo in 2021. I'm passionate about crypto and love to share my knowledge. I hate bankers and I hope that cryptocurrency will change the financial world for the better. View full profile...
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