The US Federal Trade Commission fined Celsius Network $4.7 billion., now bankrupt crypto lender. However, his sentence will be postponed. “Allow Celsius to return remaining assets to consumers under bankruptcy proceedings.”
Second announcement From July 13, Celsius and its affiliates will be permanently banned. “offering, marketing or promoting any product or service that can be used to invest, trade, invest or attract any asset”.
The New Jersey-based company has marketed a range of cryptocurrency-related products and services, such as interest-bearing accounts, personal loans backed by cryptocurrency deposits, and a crypto exchange. In the FTC complaint, the founding partners Alex MashinskyShlomi Leon And Hanoch Goldstein they advertised the platform “Safe place” where to invest cryptocurrencies siphoning over $4 billion in consumer assets. The founding partners did not accept the FTC’s settlement, and the case against them will continue in federal court.
The FTC also accused Celsius of making $1.2 billion in unsecured loans, misrepresenting a $750 million consumer insurance policy, and lacking any means to track its assets and liabilities by the end of 2021. The company’s well-being, according to the FTC:
“Leon, Goldstein and Mashinsky, who lied to their customers to keep them from withdrawing their deposits, protected themselves by withdrawing substantial sums from Celsius two months before the company filed for bankruptcy. Thus, consumers lost access to their life savings, college funds and money saved.” for retirement”
The same day, the Securities and Exchange Commission and the Commodity Futures Trading Commission also filed suit against Celsius. At the same time, Mashinsky indicted by the Ministry of Justice of the united states for seven scams and her was later arrested. Celsius already existed filed for bankruptcy last July.