Celsius Network Faces Backlash, Legal Troubles

Celsius Network, a defunct cryptocurrency lender, has posted that it is pleased with the resolutions it has reached with various United States government agencies.

The announcement followed the news that the Federal Trade Commission (FTC) had fined the company $4.7 billion.

The FTC settlement with Celsius on July 13 includes a $4.7 billion fine, suspended to allow the company to return its remaining funds to users while it undergoes bankruptcy proceedings.

Celsius stated that these resolutions would not affect the company’s Chapter 11 bankruptcy plan or its ability to return customer funds.

Furthermore, Celsius stated that it is committed to cooperating with government agencies and regulatory bodies.

Although Celsius was satisfied with the results, the crypto community was not. Many Twitter users were outraged by Celsius’ remarks and criticized the company.

Joey Hendrickson tweeted that the Celsius Network announcement was “weird.”

According to the community member, if the business “had any level of human conscience,” it would be dissatisfied.

Hendrickson stated that he would prefer to hear an apology for how the company “mistreated” customers.

Amit Palaliya, a Twitter user, concurred with Hendrickson’s sentiments.

The community member was dissatisfied with the company’s use of corporate and legal jargon when communicating with users.

Palaliya urged the company to distribute the remaining funds and advised users to move on rather than continue to pour money into “legal pits.”

Another community member criticized the company on Twitter, stating they were “pleased” that the former CEO of Celsius, Alex Mashinsky, was charged with multiple crimes.

The U.S. Securities and Exchange Commission filed a lawsuit against the cryptocurrency lender and Mashinsky on July 13.

The SEC argued that the former CEO of Celsius falsely assured users of a secure investment through the company’s “Earn Interest Program.”

In addition, the U.S. Attorney for the Southern District of New York and the Federal Bureau of Investigation charged Mashinsky with fraud.

According to reports, Mashinsky was arrested on the same day as his indictment.