CDS Crypto News Celsius Founder Alex Mashinsky Seeks FTC Case Dismissal Amid Fraud Allegations
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Celsius Founder Alex Mashinsky Seeks FTC Case Dismissal Amid Fraud Allegations

Celsius Founder, Alex Mashinsky, Seeks Dismissal of FTC Case Amidst Allegations

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Celsius Founder Alex Mashinsky Seeks FTC Case Dismissal Amid Fraud Allegations

Celsius Founder Alex Mashinsky Seeks FTC Case Dismissal Amid Fraud Allegations

Crypto News – Alex Mashinsky, the founder and former CEO of crypto lending platform Celsius, has recently filed a motion to have the Federal Trade Commission (FTC) drop its ongoing case against him. This development comes as Celsius faced financial hardships and filed for bankruptcy last year amidst the crypto market downturn. Furthermore, in July, Mashinsky found himself under arrest following a coordinated effort involving the Department of Justice, consumer protection authorities, and securities and commodities regulators.

Mashinsky, who had previously pleaded not guilty to multiple charges, including fraud and the manipulation of the CEL token’s price, asserts that these allegations are unsubstantiated. His legal team argues that the FTC’s claims of him misleading investors should also be dismissed.

Celsius Founder Alex Mashinsky Seeks FTC Case Dismissal Amid Fraud Allegations
Celsius Founder Alex Mashinsky Seeks FTC Case Dismissal Amid Fraud Allegations 1

According to Mashinsky’s lawyers, “The allegations do not support a claim that Mashinsky knowingly made a misstatement to fraudulently obtain customer information from a financial institution,” as stipulated by the Gramm-Leach-Bliley Act, a 1999 law governing such matters.

In a parallel legal move, Mashinsky’s former Chief Technology Officer, Hanoch “Nuke” Goldstein, has joined the fight, contending that the FTC must establish clearer regulations before pursuing novel cases like marketing fraud. Goldstein further claims that he is unfairly being held accountable by association with other Celsius executives. The FTC’s reliance on his retweeting of a Celsius blog post is a point of contention.

Simultaneously, U.S. Attorney Damian Williams has requested the court to temporarily halt the FTC proceedings, citing the potential prejudice it may cause to the ongoing criminal case.

These legal developments underscore the complex and evolving regulatory landscape surrounding the cryptocurrency industry, where issues of fraud, manipulation, and investor protection continue to be subjects of intense scrutiny.

Celsius Founder Alex Mashinsky Seeks FTC Case Dismissal Amid Fraud Allegations
Sources:Coin Desk

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