{"id":22271,"date":"2023-09-12T13:01:59","date_gmt":"2023-09-12T13:01:59","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/former-celsius-ceo-mashinsky-seeks-dismissal-of-ftc-case\/"},"modified":"2023-09-12T13:02:01","modified_gmt":"2023-09-12T13:02:01","slug":"former-celsius-ceo-mashinsky-seeks-dismissal-of-ftc-case","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/former-celsius-ceo-mashinsky-seeks-dismissal-of-ftc-case\/","title":{"rendered":"Former Celsius CEO Mashinsky seeks dismissal of FTC case"},"content":{"rendered":"

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Alex Mashinsky, founder and former CEO of now-bankrupt crypto lender Celsius,\u00a0filed\u00a0a new motion in court seeking the dismissal of the United States Federal Trade Commission case against him \u201cin its entirety.\u201d<\/p>\n

The legal counsel for the former Celsius boss argued that the allegations against their client do not support the claim that he knowingly made a misstatement to \u201cfraudulently obtain customer information from a financial institution.\u201d According to the lawyers, the accusations do not meet the standards for a claim under the Gramm-Leach-Bliley Act. This 1999 law requires knowingly making false claims to collect customer information fraudulently from a financial institution.<\/p>\n

Additionally, the lawyers claimed that because Mashinsky resigned from his position as CEO of Celsius on Sept. 27, 2023, the complaint cannot prove that he \u201cis violating\u201d or \u201cis about to violate\u201d the law. <\/p>\n

The FTC issued a $4.7-billion fine against bankrupt crypto lender Celsius Network in July and filed a lawsuit against the Celsius founder along with Celsius\u2019 co-founders, Shlomi Daniel Leon and Hanoch \u201cNuke\u201d Goldstein. Mashinsky\u2019s legal team was also representing Goldstein.<\/p>\n

Related: <\/em><\/strong>Fahrenheit wins bid to acquire assets of crypto lender Celsius<\/em><\/strong><\/p>\n

His lawyers claimed\u00a0that the FTC seems to be basing its case against Goldstein solely on the fact that he retweeted a blog post by Celsius. According to Goldstein, this behavior is being misconstrued as a sign of complicity or participation in the alleged misconduct.<\/p>\n

Celsius was one of the largest crypto-lending platforms, headed by Mashinsky, before it imploded in 2022. The founder resigned as CEO in September later the same year, and by the end of 2022, the United States Justice Department had indicted the former CEO on multiple charges of criminal fraud. Mashinsky has pleaded not guilty to multiple charges filed against him and is out on bail on a $40-million bond.<\/p>\n

Magazine: <\/em><\/strong>Tiffany Fong flames Celsius, FTX and NY Post: Hall of Flame<\/em><\/strong><\/p>\n