FTC Reaches Settlement with Crypto Platform Celsius Network; Charges Former Executives with Duping Consumers into Transferring Cryptocurrency into their Platform and then Squandering Billions in User Deposits

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The Federal Trade Commission announced a settlement with bankrupt cryptocurrency platform Celsius Network that will permanently ban it from handling consumers’ assets and charged three former executives with tricking consumers into transferring cryptocurrency onto the platform by falsely promising that deposits would be safe and always available.

“Celsius touted a new business model but engaged in an old-fashioned swindle,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “Today’s action banning Celsius from handling people’s money and holding its executives accountable should make clear that emerging technologies are not above the law.” 

The proposed settlement with Celsius and its affiliates will permanently ban the companies from offering, marketing, or promoting any product or service that could be used to deposit, exchange, invest, or withdraw any assets. 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. The former executives—ex-CEO and co-founder Alexander Mashinsky along with Celsius’s other co-founders Shlomi Daniel Leon and Hanoch “Nuke” Goldstein—have not agreed to a settlement and the FTC’s case against them will proceed in federal court.

New Jersey-based Celsius—which filed for bankruptcy in July 2022—marketed a variety of cryptocurrency products and services to consumers, including interest-bearing accounts, personal loans secured by their cryptocurrency deposits, and a cryptocurrency exchange. According to a complaint filed by the FTC in federal court, Mashinsky, Leon and Goldstein marketed the platform as a safe place for consumers to deposit their cryptocurrency, claiming in online videos and other forums that its platform was safer than banks because “we have less risk, we have much less risk.”

The FTC says the company and its top executives deceived users by falsely promising them that they could withdraw their deposits at any time, that the company maintained a $750 million insurance policy for deposits, that it had sufficient reserves to meet customer obligations, and that those in its Earn program could earn rewards on deposits of cryptocurrency assets as high as 18 percent annual percentage yield (APY). They also repeatedly claimed that the company did not make any unsecured loans.

Many consumers reported that these promises were important factors in their decision to deposit cryptocurrency with Celsius. In opening accounts with Celsius, consumers were required to provide access to sensitive information including their bank account and other financial information.

Far from securing customers’ cryptocurrency deposits, Celsius took title to and misappropriated these deposits totaling more than $4 billion, according to the complaint. The company used consumer deposits to fund its operations, pay rewards to other customers, borrow from other institutions, and make high-risk investments, which even the company acknowledged often lost money.

And contrary to its executives’ promises, Celsius routinely made unsecured loans, totaling $1.2 billion as of April 2022, the FTC says. At the same, the complaint charges that Celsius only had a small capital reserve that would have allowed a fraction of its customers to withdraw their cryptocurrency within one week. And, Celsius did not hold a $750 million insurance policy for deposits. The company also lacked, until mid-2021, any system to track its assets and liabilities, according to the complaint.

The FTC says that Celsius and its top executives also failed to deliver the returns they promised on consumers’ cryptocurrency. The company only provided the highest returns to those who enrolled in its loyalty program and invested in a handful of lesser-known cryptocurrencies, and gave most participants far less than promised.

Even as its fiscal health declined, the company’s top executives concealed this information from the public, telling consumers that customers’ deposits were safe and soliciting new customers just days before it froze customer accounts and filed for bankruptcy, according to the FTC. In May 2022, Mashinsky falsely claimed in an online video that “Celsius is stronger than ever, we have billions of dollars in liquidity.” And just a few days before freezing consumer withdrawals, Celsius falsely promised that it had “more than enough” assets to satisfy its consumer obligations.

While lying to their customers to keep them from withdrawing their cryptocurrency deposits, Leon, Goldstein, and Mashinsky protected themselves by withdrawing significant sums of cryptocurrency from Celsius two months before the company filed for bankruptcy. Consumers subsequently lost access to their life savings, college funds, and money saved for retirement.

In addition to banning Celsius and its affiliated companies from handling consumers’ assets, the proposed settlement prohibits the companies from misrepresenting the benefits of any product or service; from making false, fictitious, or fraudulent representations to any customer of a financial institution in order to obtain or attempt to obtain their financial information; and from disclosing nonpublic personal information about consumers without their express consent.

The Commission voted 3-0 to authorize staff to file a complaint against the Celsius enterprise, Leon, Goldstein, and Mashinsky and to approve a stipulated order with Celsius and its affiliated companies. The complaint was filed in the U.S. District Court for the Southern District of New York.

NOTE: The Commission authorizes the filing of a complaint when it has “reason to believe” that the named defendant is violating or is about to violate the law and it appears to the Commission that a proceeding is in the public interest. Stipulated orders have the force of law when approved and signed by the District Court judge.

The lead staff attorneys on this matter are Katherine Aizpuru, Katherine Worthman, and Stephanie Liebner from the FTC’s Bureau of Consumer Protection.

Official news published at https://www.ftc.gov/news-events/news/press-releases/2023/07/ftc-reaches-settlement-crypto-platform-celsius-network-charges-former-executives-duping-consumers

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Hanna Interpreting Services Awarded Comparably’s Best Company for Work-Life Balance

Hanna Interpreting Services, a premier language services provider, is proud to announce its recognition by Comparably as one of the best companies for work-life balance. This honor is a testament to the company’s unwavering commitment to employee well-being and its innovative approach to fostering a harmonious work environment.

Comparably’s accolade assesses factors such as employee satisfaction with work-life balance, average hours worked per day, lunch break lengths, and overall feelings of burnout. Hanna Interpreting Services' dedication to creating an environment that melds productivity with personal time has made it stand out in this evaluation.

A significant contributor to this balance is the company's hybrid working model, where employees merge the best of both worlds by working remotely for three weeks and in the office for one week every month. This flexibility allows team members to maintain their personal lives while still fostering in-person collaboration. Hanna also ranked among the top 35% of companies for diversity and in the top 40% for gender balance.

"It's a balance we've been striving to achieve, especially in these dynamic times," says President Tom Elias Hanna. "We understand the challenges presented by both remote work and the need to be in-office."

September is a monumental month for Hanna Interpreting Services. In addition to the Comparably award, the company celebrated its 13th anniversary on September 9, marking over a decade of industry leadership and commitment to bridging linguistic barriers. The month also saw the inauguration of a brand-new office space, showcasing the company’s dedication to growth and serving as a hub for innovation and team collaboration.

As Hanna Interpreting Services continues to evolve and set benchmarks in the industry, the core values remain consistent: a commitment to bridging language barriers, a dedication to employee well-being, and a vision to be the most trusted name in language services.

Founded in 2010 by mother and son duo Jennifer Hanna and Tom Elias Hanna in their garage, Hanna has grown to more than 70 employees, served 1.1 million clients to date in 250+ languages, and has sponsored countless outreach events to serve the local community.

For more information about Hanna Interpreting Services or to schedule an interview, please contact Sean Spicer, Revenue Operations Manager, at Sean.Spicer@HannaIS.com
 

Contact Information:
Sean Spicer
RevOps Manager
sean.spicer@hannais.com
(619) 963-2331


Original Source: Hanna Interpreting Services Awarded Comparably's Best Company for Work-Life Balance

With Nearly 2,000 Athletes, the 2023 JCC Maccabi Games & Access, North America’s Largest Jewish Teen Sports and Community Building Event, Leaves a Lasting...

With Nearly 2,000 Athletes, the 2023 JCC Maccabi Games & Access, North America’s Largest Jewish Teen Sports and Community Building Event, Leaves a Lasting Impact
Boys 16U Soccer Finals

The Fort Lauderdale Maccabi Soccer team won their gold medal match against the Philadelphia team.

The 2023 JCC Maccabi Games® & Access, hosted by the David Posnack Jewish Community Center (DPJCC) in Fort Lauderdale, Florida, have concluded with resounding success and heartfelt gratitude to the community that made it all possible. This week-long celebration of sports, camaraderie, and inclusivity has left a lasting impact, thanks to the dedicated efforts of our generous supporters.

Close to 2,000 Jewish teen athletes aged 12-16, representing communities worldwide, gathered in Fort Lauderdale to experience the joy of sports and the power of inclusion. The Games, presented by the JCC Association of North America, offered an unforgettable Olympic-style experience filled with competitions, opening and closing ceremonies, community service, social and cultural events, and opportunities to create Jewish connections that will last a lifetime.

One of the highlights of this year's event was the introduction of JCC Maccabi Access, brought to you by UKG and presented by the Posnack Family Foundation. This program is designed to provide athletes aged 12-18 with intellectual and developmental disabilities an inclusive Maccabi experience. This three-day program, held in conjunction with the 2023 JCC Maccabi Games®, exemplified the event's commitment to inclusivity and diversity.

Scott Ehrlich, CEO of the David Posnack Jewish Community Center, reflected on the Games, stating, "We were overjoyed to welcome Jewish athletes from all corners of the world to Broward County for the 2023 JCC Maccabi® Games & Access. Our heartfelt appreciation goes to our JCC Maccabi Team led by our Co-Chairs, Lori and Mitch Green, Debby and Dennis Eisinger, Davia and Jim Mazur, and Missy and Dan Longman. Their unwavering commitment contributed significantly to establishing an atmosphere that nurtured camaraderie, inclusiveness, and the genuine essence of the Games."

The Games' success was significantly bolstered by the support of honorary co-chairs Scott Scherr, founder of Ultimate Software, and Scot Hunter, co-founder of Emerald Multi-Family Office. Their encouragement to business owners and the backing of corporate and community partners played a pivotal role in the event's success.

Supporting Corporate Sponsors:

  • Emerald Multi-Family Office
  • Southern Glazer's Wine & Spirits
  • Official Torch Sponsor: Duty-Free America
  • Kent Security
  • Official Beverage Sponsor: Coca-Cola 
  • The Meltzer Group
  • Official Transportation: Sponsor Comcast 
  • Official Media Partner: Clear Channel Outdoor 
  • Official Produce Sponsor: ProEx International
  • Official Pun, Pass, and Kick Sponsor: Miami Dolphins
  • Official Basketball Sponsor: Miami HEAT
  • Official Baseball Sponsor: Miami Marlins
  • Official Cleaning Company Sponsor: AK Building Services
  • Official Swimming Sponsor: Blavatnik Family Foundation 
  • Northland Investments
  • Official V-VIP Dinner Sponsor: Aroma Market & Catering
  • Custom Outfitters LLC
  • FP&L
  • Greenspoon Marder
  • Manne Foundation for Homeless Prevention
  • Official Mitzvah Sponsor: Children's Services Council of Broward County

The 2023 JCC Maccabi Games® & Access were not just about competition; they were also about giving back to the community. The JCC Cares Mitzvah Projects showcased the spirit of service, assembling over 1,000 Rosh Hashanah food baskets for Goodman JFS Seniors and Holocaust Survivors, donating over 2,500 pairs of new sneakers to students, in partnership with Children's Services Council of Broward County, and repurposing 340 medals for the "We Finish Together" organization, spreading kindness to ill children and adults in hospitals.

Among the highlights:

  • Approximately 10,000 spectators attended the Opening Ceremony at FLA Live Arena.
  • 1,620 visiting athletes.
  • 21 Access participants.
  • 375 Coaches & Chaperones.
  • 850 Community Volunteers.
  • 600 Host Families.
  • 215 Local Athletes & Access participants representing Team Fort Lauderdale.
  • 64 delegations, including international representation from Israel, Ukraine, Argentina, South Africa, Mexico, Canada, Great Britain, and 53 cities throughout the USA.
  • 100 Local businesses and individuals generously supporting.
  • 110,000 bottles of Dasani water, Powerade, and soda provided by Coca-Cola.
  • 47,000 pounds of ice used.
  • 20,000 meals served.
  • 300 athletes and coaches wrapped tefillin daily.

As the Games came to a close, the resounding message was one of unity, inclusivity, and the power of community. The 2023 JCC Maccabi Games® & Access will be remembered not only for the athletic achievements but also for the lasting friendships, cultural exchanges, and shared experiences that will continue to enrich the lives of all those who participated.

For more information about the 2023 JCC Maccabi Games® & Access and how you can support future events, please visit dpjcc.org.

Contact Information:
Rixys Alfonso
Corporate Sponsorship Consultant
rixys@causemomarketing.com
305-558-8877

Scott Ehrlich
Chief Executive Officer
sehrlich@dpjcc.org
954-434-0499, ext. 313
Related Images
Boys 16U Soccer Finals
Boys 16U Soccer Finals

The Fort Lauderdale Maccabi Soccer team won their gold medal match against the Philadelphia team.

Ukrainian team with Stanley
Ukrainian team with Stanley

The Ukranian team, sponsored by the David Posnack JCC, poses with Stanley C. Panther at opening ceremonies of the JCC Maccabi Games & Access.

JCC Access Games Athlete & Coaches
JCC Access Games Athlete & Coaches

Nico poses with his coaches during a skill competition at the Maccabi Access games.



Original Source: With Nearly 2,000 Athletes, the 2023 JCC Maccabi Games & Access, North America's Largest Jewish Teen Sports and Community Building Event, Leaves a Lasting Impact
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