TechFlow news, the U.S. Federal Trade Commission (FTC) has reached a settlement with cryptocurrency lending company Celsius Network. Under the agreement, Celsius Network will be barred from handling consumer assets, and three former executives are accused of deceiving consumers by making false promises to encourage them to transfer their cryptocurrencies to its platform, claiming that deposits were safe and readily accessible.
Under the proposed settlement between the FTC, Celsius, and its affiliated companies, these entities are permanently prohibited from offering, marketing, or promoting any products or services that can be used for depositing, exchanging, investing in, or withdrawing any assets. Celsius and its affiliates have agreed to a $4.7 billion judgment, which will be suspended to allow Celsius to return its remaining assets to consumers through its bankruptcy proceedings.
However, former CEO and co-founder Alexander Mashinsky, along with other co-founders of Celsius, Shlomi Daniel Leon and Hanoch "Nuke" Goldstein, have not yet agreed to the settlement. As a result, the FTC's lawsuit against them will continue in federal court.
