Atlanta, Georgia – On August 21, 2023, an Order to Cease and Desist (“Order”) issued by the Georgia Department of Banking and Finance (“Department”) to Alex Mashinsky, the former CEO of Celsius Network, LLC (“Celsius Network”), became final. 

The Order to Cease and Desist was issued by the Department after it obtained evidence that Celsius Network, while under the control of Alex Mashinsky, engaged in money transmission[1] without a valid license or under an applicable exemption in violation of O.C.G.A. § 7-1-681.

Pursuant to O.C.G.A. § 7-1-681(b), Georgia law prohibits any person from transmitting money or monetary value, including virtual currency, within the United States or to locations abroad by any and all means without having first obtained a money transmitter license or pursuant to an exemption from licensure under O.C.G.A. § 7-1-682. 

Pursuant to O.C.G.A. § 7-1-681(c), Georgia law also prohibits any person from directly or indirectly controlling another person that engages in money transmission without a money transmitter license or pursuant to an exemption from licensure, and such person is in violation of Georgia law to the same extent as the person controlled.

 

 Contact:

Rod Carnes
Deputy Commissioner for Non-Depository Financial Institutions
Phone: (770) 986-1371
E-mail: [email protected] 

 

 

[1] The activity engaged in by Celsius Network would have required a seller of payment instruments license prior to June 30, 2023 as a seller of payment instruments licensed authorized both money transmission and the sale of payment instruments. However, following changes to the Georgia Code, which became effective July 1, 2023, all sale of payment instruments activity is now classified as money transmission, and a money transmitter license now authorizes both money transmission and the sale of payment instruments. O.C.G.A. §§ 7-1-680(14), 7-1-681(a).

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