Celsius Network used customer funds for operational purposes and high-risk investments.
The Federal Trade Commission (FTC) has reached a settlement with cryptocurrency platform Celsius Network, which permanently bans the company from handling consumer assets. The settlement follows charges against three former executives who allegedly deceived consumers into depositing cryptocurrency on the platform under false promises of safety and availability. The company reportedly misappropriated over $4 billion in deposits and also made unsecured loans without the proper asset and liability tracking systems.
“Celsius touted a new business model but engaged in an old-fashioned swindle,” said FTC’s Bureau of Consumer Protection Director Samuel Levine. “Today’s action banning Celsius from handling people’s money and holding its executives accountable should make clear that emerging technologies are not above the law.”
Under the proposed settlement, Celsius and its affiliates are prohibited from promoting or offering any product or service related to depositing, exchanging, investing, or withdrawing assets. The former Celsius executives have not agreed to a settlement, and the FTC’s case against them will proceed in federal court.
As the Lord Leads, Pray with Us…
- For Director Levine as he heads the FTC’s Bureau of Consumer Protection.
- For Chair Lina Khan as she oversees the Federal Trade Commission.
- For U.S. financial institution leaders to run their businesses ethically and honestly.
Sources: Federal Trade Commission
