Former Celsius CEO Seeks to Drop FTC Fraud Case, Citing Lack of Crypto Rules

Alex Mashinsky, former CEO of crypto lender Celsius, filed to have the FTC drop its case against him related to Celsius' bankruptcy.
Mashinsky was arrested in July on fraud and manipulation charges, which he denies. His lawyers say the FTC claims don't meet the legal standard.
Mashinsky argues the FTC needs more rules before taking on novel cases like crypto marketing fraud.
Former Celsius CTO Hanoch Goldstein also sought to separate himself from other executives.
The U.S. Attorney asked to pause FTC proceedings to avoid impacting the criminal case against Mashinsky.

coindesk.com

Relevant topic timeline:

9/6/2023

Ex-Celsius CEO Mashinsky's Assets Ordered Frozen by Court as DOJ Case Continues

Former Celsius chief Alex Mashinsky's banking and real estate assets have been frozen as a criminal case against him progresses, following his arrest on charges of securities fraud and manipulation of the company's CEL token.

9/25/2023

The Spectacular Fall of Crypto's White Knight - How Sam Bankman-Fried Fooled Even Smart Investors

Sam Bankman-Fried, founder of the crypto exchange platform FTX, is facing legal trouble and a class-action lawsuit after the collapse of the company, leaving investors questioning the nature of cryptocurrency and the distinction between functional and dysfunctional financial systems.

10/2/2023

Bankman-Fried to Claim Good Faith Despite FTX Fund Misuse, But Prosecution Evidence May Undermine Defense

Sam Bankman-Fried, founder of bankrupt cryptocurrency exchange FTX, is expected to defend himself at his fraud trial by arguing that he did not believe the use of customer funds was improper and by challenging the credibility of witnesses against him. However, testimony from former colleagues and evidence of other cryptocurrency companies' practices may undermine his claim of good faith.

Topics

Posted 9/12/2023, 6:15:00 AM