New York Attorney General Letitia James has filed a lawsuit against Alex Mashinsky, alleging that the Celsius founder and CEO made numerous “false and misleading statements” that led to investors losing billions.
In a Jan. 5 statement, the New York Attorney General’s office announced the lawsuit, which allegedly involved defrauding more than 26,000 residents of the US state out of billions of dollars worth of cryptocurrency. According to James, Mashinsky’s actions that led to Celsius’ bankruptcy filing contributed to investor losses by misrepresenting the platform’s financial situation and failing to register personally as required by state law.
“As the former CEO of Celsius, Alex Mashinsky promised to lead investors to financial freedom, but he led them down a path of financial ruin,” James said. “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.”
I’m suing the former CEO of cryptocurrency platform @CelsiusNetwork for defrauding investors out of billions of dollars.
Alex Mashinsky lied to people about the risks of investing in Celsius, hid its deteriorating financial condition, and failed to register in New York.
—NY AG James (@NewYorkStateAG) January 5, 2023
I am suing the ex-CEO of cryptocurrency platform @CelsiusNetwork for defrauding investors out of billions of dollars.
Alex Mashinsky lied to people about the risks of investing in Celsius, concealed his deteriorating financial situation, and did not register in New York.
The lawsuit was aimed at barring Mashinsky from “doing business in New York” in the future, as well as paying damages, restitution, and repayment to affected Celsius investors.
This story is developing and will be updated.
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