Celsius Former CEO is Being Sued for Fraud
The New York State Attorney General filed a lawsuit against the former CEO of bankrupt Celsius alleging that he defrauded investors.
According to a press release, Leticia James is suing the crypto lender’s founder Alex Mashinsky. He allegedly made misleading statements to investors about many aspects of his company and failed to properly register as required by state law.
As the former CEO of Celsius, Alex Mashinsky promised to lead investors to financial freedom, but led them down a path of financial ruin.
The law is clear that making false and unsubstantiated promises and misleading investors is illegal.
Today, we are taking action on behalf of thousands of New Yorkers who were defrauded by Mr. Mashinsky to recover their losses. My office will remain vigilant and ensure that [malicious individuals] who attempt to take advantage of New York investors are held accountable.
James claims that Mashinsky told clients that Celsius would make low-risk investments and only lend assets to reputable companies. Instead, he “routinely” lent assets to high-risk counterparties and harmed his investors.
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If James’ lawsuit is successful, Mashinsky will be barred from doing business in New York again, as well as pay an undisclosed amount in damages, restitution and disgorgement, according to a press release.
Celsius originally filed for bankruptcy in July 2022, weeks after the platform’s native asset plunged by more than 99% and it was forced to stop withdrawals from customers.
At the time, the company cited extreme market volatility as the reason for its suspension.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
