Alex Mashinsky Seeks Dismissal of FTC Case

Introduction

Alex Mashinsky, the founder and former CEO of the now-bankrupt crypto lender Celsius, is taking legal action to dismiss a case brought against him by the United States Federal Trade Commission (FTC). This motion challenges the validity of the allegations, aiming for a complete dismissal.

Legal Argument

Mashinsky's legal team contends that the charges do not substantiate claims of fraudulent misstatements made to acquire customer information from financial institutions. The defense argues that the accusations fail to satisfy the requirements set by the Gramm-Leach-Bliley Act, a law established in 1999. This act mandates that there must be a knowing intent to make false statements to fraudulently collect customer data.

Gramm-Leach-Bliley Act

The Gramm-Leach-Bliley Act is critical in this case. It stipulates strict standards for proving that false claims were knowingly made to gather customer information from financial institutions fraudulently. Mashinsky's defense insists that the FTC's allegations lack the necessary evidence to meet these stringent legal criteria.

Conclusion

Mashinsky's motion for dismissal aims to refute the FTC's accusations by highlighting the insufficiency of evidence under the Gramm-Leach-Bliley Act. This legal maneuver is pivotal as it seeks to eliminate the charges entirely, arguing that the claims do not hold up under the law's requirements.