According to the Daily Planet, the U.S. Federal Trade Commission (FTC) has reached a settlement agreement with the cryptocurrency lending company Celsius Network, which will be prohibited from handling consumers' assets and accuses three former executives of deceiving consumers into transferring cryptocurrencies to their platform by falsely promising that deposits are safe and available at any time.
The FTC’s proposed settlement with Celsius and its affiliates would permanently prohibit these companies from offering, marketing, or promoting any product or service that can be used to deposit, exchange, invest, or withdraw any asset. Celsius and its affiliates agreed to pay a $4.7 billion judgment, which will be stayed to allow Celsius to return its remaining assets to consumers during bankruptcy proceedings.
Former CEO and co-founder Alexander Mashinsky and Celsius’ other co-founders Shlomi Daniel Leon and Hanoch “Nuke” Goldstein have not yet agreed to settle, and the FTC’s lawsuit against them will continue in federal court.