January 5, 2023, New York and Leticia Attorney General James has filed a lawsuit against Celsius co-founder and former CEO Alex Mashinsky. The lawsuit alleges that Mashinski and Celsius defrauded “hundreds of thousands of investors, including more than 26,000 New Yorkers, out of billions of dollars worth of cryptocurrency.”
Former CEO of Celsius Accused of Making False Promises and Misleading Investors
Core Scientific to Shut Down 37,000 Bitcoin Miners Owned by Celsiuslawsuit against former Celsius CEO Alex Mashinski,filed by the New York State Attorney General the day after it detailed the The lawsuit alleges Mashinski “repeatedly made false and misleading statements about the safety of Celsius” and encouraged investors to “deposit billions of dollars of digital assets into the platform.” . With 26,000 New Yorkers affected by the Celsius collapse, James wants to ban Mashinski from doing business in New York, according to the lawsuit.
Content of the lawsuit:
Mashinski has used Celsius as a safe alternative to banks while concealing its actual involvement in risky investment strategies. Promoted Celsius.
The state of New York and Attorney General Letitia James have been cracking down on the cryptocurrency business for some time. In June, James warned of volatility in the crypto industry. At the end of November 2022, James called on Congress to ban the use of cryptocurrencies from US retirement accounts. Additionally, the New York Attorney General targeted cryptocurrency lender Nexo in a lawsuit announced at the end of September 2022.
“As the former CEO of Celsius, Alex Mashinski has led investors down a path of financial ruin that gave them financial freedom.” Attorney General James said. “The law makes it clear that it is illegal to make false, unsubstantiated promises or mislead investors. Thousands of people today have been deceived by Mr. Mashinsky.” On behalf of New Yorkers, we are taking action to recoup our losses, and my office will remain vigilant to ensure that bad actors trying to take advantage of New York investors are held accountable.
The New York-based lawsuit against Mr. Mashinsky and his dealings with Celsius follows this week’s bankruptcy ruling, which ruled that deposits in high-interest accounts belonged to Celsius. is. New York-based Bankruptcy Court Judge Martin Glenn said Celsius owned the rights to the funds, not the customers who deposited their digital assets on the now-defunct lending platform.
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