Celsius Network from FTC with $ 4.7 billion and forbidden to offer services

Celsius Network from FTC with $ 4.7 billion and forbidden to offer services

The Federal Trade Commission (FTC) of the United States has a fine of $ 4.7 billion against the insolvent crypto finance institute Celsius Network. The regulatory authority claims that Celsius "wasted billions of user deposits" after it "deceived" customers to place funds.

According to a report dated July 10, Celsius and its partner companies are fully prohibited from offering, "marketing or promoting products or services that could be used to pay, exchange, invest or withdraw assets".

The FTC has accused Celsius of misused over $ 4 billion in customer property. The founders of the company, Alex Mashinsky, Shlomi Leon and Hanoch Goldstein, used the system as a "safe place" for customers to transfer their cryptocurrencies. The FTC also accuses Celsius of having awarded uncertain loans of $ 1.2 billion.

In addition, the FTC claims that Celsius incorrectly stated that it has $ 750 in customer insurance and had no opportunities to follow his own assets and obligations until late at night. Even during the cryptocurrency bear market in 2022, managers were allegedly clear about the company's financial health.

The US stock exchange supervisory authority (Securities and Exchange Commission) and the Commodity Futures Trading Commission have also filed lawsuits against Celsius. Alex Mashinsky, co-founder of Celsius, was also exposed to seven allegations of fraud by the US Ministry of Justice. Celsius had already filed for bankruptcy last July.

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