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The FTC determined that the exchange is guilty of defrauding investors because Celsius defrauded customers. And the remediation is that investors get their mon
by legitster 3y ago
The FTC determined that the exchange is guilty of defrauding investors because Celsius defrauded customers.
And the remediation is that investors get their money back.
Kind of weird when you think about it. But it's a good reminder that the goal of the FTC is to protect investors.
- seanhunter 3y agoI think you mean the SEC. That’s the agency here and yes, investor protection is part of the SEC’s mandate.
- legitster 3y agoNo, I meant the FTC which already settled with Celcius today: https://www.ftc.gov/news-events/news/press-releases/2023/07/ftc-reaches-settlement-crypto-platform-celsius-network-charges-former-executives-duping-consumers https://www.ftc.gov/news-events/news/press-releases/2023/07/...
- seanhunter 3y agoOK cool. My understanding is the FTC has a consumer protection mandate vs the SEC is about investor protection. So the FTC covers fair trade, deceptive and unfair business practises and that sort of thing vs the SEC will cover securities fraud, illegal marketing of securities to unqualified investors and whatnot. Feels like they both are relevant here.
- jowea 3y agoI am somewhat confused about the situation, but your own link says > The companies also agreed to a judgment of $4.7 billion, which will be suspended to permit Celsius to return its remaining assets to consumers in bankruptcy proceedings. This seems like the FTC claims the judgment is suspend so the normal clientele can have its money back, not any institutional investors who knowingly put their money at risk by investing into the company itself.
- RoyGBivCap 3y ago[dead]
- Outright0133 3y agoJust oligarchy things.
- ivalm 3y agoCelsius is not a bank, the customers were junior creditors. Junior creditors get paid after senior creditors. People should not deposit their money in not banks if they want guarantees on their deposits.