Alex Mashinsky, the former CEO of Celsius Network, has filed a motion to dismiss the Federal Trade Commission (FTC) lawsuit against him. In the motion, Mashinsky argues the FTC has failed to allege he violated any laws or rules. His lawyers say the FTC is not entitled to monetary relief and cannot substantiate Mashinsky is currently violating the law.
Mashinsky Fights Back: Former Celsius CEO Challenges FTC Lawsuit, Claims No Legal Violations
In a memorandum filed September 11, 2023, Mashinsky’s legal team asserts the FTC complaint does not show he breached the Federal Trade Commission Act. His lawyers claim the FTC cannot seek monetary damages under the Act per a 2021 Supreme Court ruling.
“The complaint cannot substantiate a claim that Mashinsky ‘is violating’ or is ‘about to violate’ the law because Mashinsky resigned from his position as CEO of Celsius [on] September 27, 2023,” the court filing reads.
The memorandum states the FTC’s allegations fail to support that Mashinsky knowingly made false statements to deceptively obtain customer data. This purportedly does not meet the requirements to allege a violation of the Gramm-Leach-Bliley Act. Mashinsky’s lawyers also contend the FTC has not demonstrated grounds for monetary relief under the Act.
In their filing, Mashinsky’s attorneys ask the court to dismiss the FTC’s Federal Trade Commission Act and Gramm-Leach-Bliley Act claims against him. They argue the complaint does not establish that Mashinsky broke any laws or regulations. When he was officially charged by the FTC, Mashinsky “vehemently” denied the allegations.
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