Celsius Banned from Trading and Fined $4.7 Billion by FTC

Celsius Banned from Trading and Fined $4.7 Billion by FTC

The Federal Trade Commission (FTC) announced a settlement with bankrupt crypto platform Celsius that will permanently prohibit it from handling consumers' assets, and charged three former executives with tricking consumers into transferring cryptocurrencies onto the platform by falsely promising that deposits would be safe and always available.

The proposed settlement with Celsius and its affiliates will permanently ban the companies from offering, marketing, or promoting any product or service that could be used to deposit, exchange, invest, or withdraw any assets. The companies also agreed to a judgment of $4.7 billion, which will be suspended to permit Celsius to return its remaining assets to consumers in bankruptcy proceedings.

Alexander Mashinsky, former CEO and co-founder of Celsius, and Celsius' other co-founders, Shlomi Daniel Leon and Hanoch Nuke Goldstein, have not yet agreed to a settlement, and the FTC's case against them will proceed in federal court.

Related: Former Celsius CEO Alex Mashinsky Arrested and Sued by US DOJ, SEC, CFTC, FTC

 

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