Lawsuit.pdf

The Federal Trade Commission (FTC) has filed a complaint against Celsius Network Inc., Celsius Network LLC, and other related entities, as well as individuals Alexander Mashinsky, Shlomi Daniel Leon, and Hanoch "Nuke" Goldstein, alleging that they engaged in deceptive acts or practices in connection with the marketing and sale of cryptocurrency lending and custody services. The complaint claims that the defendants made false promises to consumers, including guarantees that their deposits were safe and that they could withdraw their cryptocurrency at any time, when in reality the defendants were engaging in uncollateralized and undercollateralized lending and failing to maintain sufficient reserves to meet customer obligations. The FTC is seeking permanent injunctive relief, monetary relief, and other relief for the defendants' alleged violations of the Federal Trade Commission Act and the Gramm-Leach-Bliley Act.