Odaily News - Celsius Network stated that its $4.7 billion settlement agreement with the Federal Trade Commission (FTC) will not affect its restructuring plans or the amount of assets to be recovered for its clients.



In a statement submitted to the court on Thursday, Celsius mentioned that the company "remains committed to successfully executing its Chapter 11 plan, and Celsius' special committee and senior leadership continue to work with regulatory and government agencies, focusing on maximizing value for stakeholders."



Earlier, it was reported that the FTC reached a settlement agreement with cryptocurrency lending company Celsius Network. As part of the agreement, the platform will be prohibited from handling consumer assets. Three former executives were accused of making false promises regarding the safety and availability of deposits, deceiving consumers into transferring their cryptocurrency to the platform.



The proposed settlement agreement between the FTC and Celsius and its affiliates will permanently ban these companies from offering, marketing, or promoting any products or services that can be used to deposit, exchange, invest or withdraw any assets. Celsius and its affiliates have agreed to pay a $4.7 billion judgment, which will be stayed to allow Celsius to return its remaining assets to consumers through the bankruptcy process.



Former CEO and co-founder Alexander Mashinsky, along with other co-founders Shlomi Daniel Leon and Hanoch "Nuke" Goldstein, have not agreed to the settlement, and the FTC's lawsuit against them will continue in federal court. (CoinDesk)