{"id":22267,"date":"2023-07-13T17:23:15","date_gmt":"2023-07-13T17:23:15","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/us-federal-trade-commission-slaps-celsius-network-with-4-7b-fine\/"},"modified":"2023-07-13T17:23:15","modified_gmt":"2023-07-13T17:23:15","slug":"us-federal-trade-commission-slaps-celsius-network-with-4-7b-fine","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/us-federal-trade-commission-slaps-celsius-network-with-4-7b-fine\/","title":{"rendered":"US Federal Trade Commission slaps Celsius Network with $4.7B fine"},"content":{"rendered":"<p><b>(Originally posted on : CoinJournal: Latest Bitcoin, Ethereum &amp; Crypto News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"post-article-image  -mt-24  mb-8  lg:-mt-32  rounded  overflow-hidden\">\n<picture><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2023\/07\/1689259927004-fcd598a9-392e-46b0-8477-bfc44f7a2f99-smartcrop-750x375.webp\" type=\"image\/webp\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2023\/07\/1689259927004-fcd598a9-392e-46b0-8477-bfc44f7a2f99-smartcrop-363x181.webp\" type=\"image\/webp\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2023\/07\/1689259927004-fcd598a9-392e-46b0-8477-bfc44f7a2f99-smartcrop-750x375.jpg\" type=\"image\/jpeg\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2023\/07\/1689259927004-fcd598a9-392e-46b0-8477-bfc44f7a2f99-smartcrop-363x181.jpg\" type=\"image\/jpeg\"\/>\n<\/picture>                    <\/div>\n<ul class=\"decimal_type\">\n<li>The FTC said Celsius \u201csquandered billions in user deposits\u201d after \u201cduping\u201d customers into depositing funds.<\/li>\n<li>Celsius and its former CEO have also been sued by the US SEC today.<\/li>\n<li>Last week, the CFTC found the former CEO and Celsius Network guilty of violating several laws while operating in the country.<\/li>\n<\/ul>\n<p>In what appears as a double tragedy for the bankrupt crypto lending platform Celsius Network, the US Federal Trade Commission (FTC) has issued the company with a $4.7 billion fine.<\/p>\n<p>The judgment will, however, be suspended to \u201cpermit Celsius to return its remaining assets to consumers in bankruptcy proceedings.\u201d<\/p>\n<p>According to the July 13 <a href=\"https:\/\/www.ftc.gov\/news-events\/news\/press-releases\/2023\/07\/ftc-reaches-settlement-crypto-platform-celsius-network-charges-former-executives-duping-consumers\">FTC judgment<\/a>, Celsius and its affiliate firms will be permanently barred from \u201coffering, marketing, or promoting any product or service that could be used to deposit, exchange, invest, or withdraw any assets.\u201d<\/p>\n<p>FTC\u2019s fine was announced just hours after the <a href=\"https:\/\/coinjournal.net\/news\/cel-price-takes-another-hit-us-sec-files-lawsuit-against-celsius\/\">United States SEC filed a lawsuit<\/a> against Celsius Network and its former CEO Alex Mashinsky.<\/p>\n<h2>Why is Celsius under siege by US regulators?<\/h2>\n<p>The crypto lending company, which had its headquarters in New Jersey, offered customers a range of cryptocurrency services including interest-bearing accounts, personal loans backed by customers\u2019 bitcoin deposits, and a cryptocurrency exchange before its collapse.<\/p>\n<p>The FTC has stated that the platform co-founders Alex Mashinsky, Shlomi Leon, and Hanoch Goldstein misappropriated more than $4 billion in consumer assets while marketing the platform as a \u201csafe place\u201d for users to deposit their cryptocurrencies.<\/p>\n<p>The FTC also charged Celsius with making $1.2 billion in unsecured loans, lying about having a user insurance policy worth $750 million, and without having any way to track its assets and liabilities until late 2021. According to the FTC, officials reportedly lied about the state of the company even as the 2022 cryptocurrency bear market was beginning.<\/p>\n<div class=\"post-meta\">\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Share this article<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Categories<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Tags<\/h6>\n<\/p><\/div>\n<\/p><\/div>\n<p><a href=\"https:\/\/coinjournal.net\/news\/us-federal-trade-commission-slaps-celsius-network-with-4-7b-fine\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : CoinJournal: Latest Bitcoin, Ethereum &amp; Crypto News ) The FTC said Celsius \u201csquandered billions in user deposits\u201d after \u201cduping\u201d customers into depositing funds. Celsius and its former CEO have also been sued by the US SEC today. Last week, the CFTC found the former CEO and Celsius Network guilty of violating [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":22268,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/22267"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=22267"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/22267\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/22268"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=22267"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=22267"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=22267"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}