Celsius Network, a bankrupt crypto lender, has expressed satisfaction with the resolutions it reached with various United States government agencies following a $4.7 billion fine imposed by the Federal Trade Commission (FTC). The fine is currently suspended to enable the company to return funds to its users during the bankruptcy proceedings. Celsius emphasized that these resolutions will not hinder its chapter 11 plan or its ability to provide value to customers.
While Celsius praised the outcomes, members of the crypto community voiced their discontent. Many criticized the company’s remarks on Twitter, expressing frustration and demanding an apology for how Celsius allegedly mistreated its customers. The use of corporate and legal jargon in addressing the users was particularly criticized, with calls for the remaining funds to be distributed promptly instead of being tied up in legal processes.
In addition to the FTC’s actions, the Securities and Exchange Commission (SEC) filed a lawsuit against Celsius and its former CEO Alex Mashinsky. The SEC accused Mashinsky of falsely promising a secure investment through Celsius Network’s “Earn Interest Program.” Furthermore, the Southern District of New York and the Federal Bureau of Investigation announced fraud charges against Mashinsky, who was reportedly arrested on the same day as part of the indictment process.
Community Response
The community response to Celsius Network’s announcement was mixed. While some members echoed the company’s sentiments, others expressed satisfaction with the charges brought against Mashinsky. These community members viewed the charges as a form of accountability for the alleged mishandling of user funds by the former CEO.
Throughout these developments, Celsius reiterated its commitment to cooperating with regulators and government agencies. However, the company faced significant criticism from individuals within the crypto community who felt that the resolutions did not go far enough to address the harm caused to customers.
Legal Troubles
In summary, Celsius Network expressed its contentment with the resolutions reached with various government agencies in the face of a substantial FTC fine. However, this sentiment was not shared by all members of the crypto community, as some voiced dissatisfaction and called for more direct action to address the alleged mistreatment of users. Meanwhile, legal troubles continued to mount for Celsius and its former CEO with the SEC filing a lawsuit and charges being brought against Mashinsky for fraud.