Founder of Crypto Lender Celsius Seeks Dismissal of FTC Case Against Him
Summary:
Alex Mashinsky, the founder and former CEO of crypto lender Celsius, seeks the dismissal of the FTC case against him, claiming the allegations do not support the charge of knowingly obtaining customer information fraudulently. His lawyers argue that the accusations fail to meet the standards of the Gramm-Leach-Bliley Act. Mashinsky's resignation as CEO further challenges the claim of violating the law. The FTC issued a $4.7 billion fine against Celsius and filed a lawsuit against Mashinsky and other founders.
Alex Mashinsky, the founder and former CEO of crypto lender Celsius, has filed a new motion in court seeking the dismissal of the entire case brought against him by the Federal Trade Commission (FTC). Mashinsky's legal counsel argued that the allegations against him do not support the claim that he knowingly made false statements to obtain customer information fraudulently from a financial institution. They further asserted that the accusations fail to meet the standards set by the Gramm-Leach-Bliley Act (GLBA), which requires knowingly making false claims to collect customer information fraudulently.
In addition, Mashinsky's lawyers claimed that his resignation as CEO of Celsius in September 2023 means that the complaint cannot establish that he is currently violating or about to violate the law. The FTC had previously imposed a $4.7 billion fine on the bankrupt crypto lender and filed a lawsuit against Mashinsky, as well as co-founders Shlomi Daniel Leon and Hanoch "Nuke" Goldstein. Mashinsky's legal team also represents Goldstein.
Mashinsky's lawyers argued that the FTC's case against Goldstein appears to be primarily based on the fact that he retweeted a blog post by Celsius. Goldstein believes that this action is being misconstrued as evidence of complicity or participation in the alleged misconduct.
Prior to its collapse in 2022, Celsius was one of the largest crypto-lending platforms headed by Mashinsky. He resigned as CEO in September of the same year, and by the end of 2022, he was indicted by the United States Justice Department on multiple charges of criminal fraud. Mashinsky has pleaded not guilty to these charges and was released on a $40 million bond.
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Published At
9/12/2023 12:36:23 PM
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