Celsius Network, the bankrupt cryptocurrency lender, expressed satisfaction with the resolution reached with various US government agencies following the announcement of a $4.7 billion fine imposed by the Federal Trade Commission (FTC). Celsius stated that the fine and resolutions will not impact its Chapter 11 bankruptcy plan or its ability to return funds to customers. The company affirmed its commitment to working with regulators and government agencies.
However, the response from the crypto community was largely negative, with many expressing outrage at Celsius' statement. Users on Twitter criticized the company for its use of corporate and legal jargon and demanded an apology for mistreating customers. celsius to distribute the remaining funds to users and move forward instead of prolonging the legal process.
In addition to the FTC fine, former Celsius CEO Alex Mashinsky faced fraud charges filed by the US Securities and Exchange Commission (SEC) on the same day. The SEC accused Mashinsky of making false promises to users regarding safe investments through Celsius' "earn interest program." Mashinsky pleaded not guilty to the charges and was released on a $40 million bond. As part of the bond conditions, he is restricted from traveling and opening new bank or cryptocurrency accounts. The indictment against Mashinsky includes seven criminal counts related to securities fraud, commodity fraud, wire fraud, and CEL token manipulation.
Despite the ongoing legal challenges, Celsius continues to cooperate with regulators. The company remains focused on its bankruptcy proceedings and aims to fulfill its obligations to customers as it navigates through this challenging period.
