Alex Mashinsky, the former CEO of Celsius Network,
has taken a proactive stance against the Federal Trade Commission (FTC) lawsuit filed against him by filing a motion to dismiss. In this legal maneuver, Mashinsky contends that the FTC has failed to provide evidence of any legal violations on his part. His legal team argues that the FTC is not entitled to seek monetary relief and has not adequately demonstrated that Mashinsky is currently in violation of any laws.
In a memorandum submitted on September 11, 2023, Mashinsky’s
legal representatives assert that the FTC’s complaint does not establish any breaches of the Federal Trade Commission Act. They point out that, as per a 2021 Supreme Court ruling, the FTC cannot pursue monetary damages under the Act. Furthermore, the memorandum emphasizes that Mashinsky resigned from his position as CEO of Celsius on September 27, 2023, thereby undermining the FTC’s claims of ongoing violations.
Mashinsky’s legal team also argues that the allegations made by the FTC do not meet the requirements to demonstrate a violation of the Gramm-Leach-Bliley Act. They contend that the FTC has not provided sufficient evidence to support claims of knowingly deceptive practices in obtaining customer data.
In light of these arguments, Mashinsky’s attorneys have petitioned the court to dismiss the FTC’s claims under both the Federal Trade Commission Act and the Gramm-Leach-Bliley Act. They assert that the FTC’s complaint fails to substantiate any breaches of laws or regulations by Mashinsky. From the outset, Mashinsky has vehemently denied the allegations brought against him by the FTC.
What are your thoughts on Alex Mashinsky’s motion to dismiss the FTC lawsuit? Feel free to share your perspectives in the comments section below.
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