The illusion of financial freedom – Just over three months later his resignation from Celsiusformer CEO of the company, Alex Mashinskyhe is in the crosshairs of American justice, which accuses him of having hidden the company’s financial situation from investors.
Lack of transparency on Celsius’s financial situation
According to a communicated on January 5, the Attorney General of New York, Joy Jamessued against Alex Mashinsky. The former Celsius CEO is said to have defrauded hundreds of thousands of investors, including more than 26,000 New Yorkers.
In detail, Alex Mashinsky allegedly deceived investors through false statements addressed to them hide a bad financial situation of Celsius. The company has reportedly lost millions of dollars in risky investment business.
However, the former Celcius CEO would repeatedly claim that the company has played “safe and low-risk investments” and to whom he only lent his goods “credible and reputable entities”. But the reality would have been quite different. Celsius reportedly regularly exposes investors’ assets to high-risk counterparties and strategies.
Alex Mashinsky allegedly lied and covered up losses to encourage investors to deposit billions of dollars in digital assets on the cryptocurrency lending platform.
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Solve financial ruin by searching for Alex Mashinsky’s wallet
For the New York attorney general, the former Celsius chief executive has promised to guide investors “To Financial Freedom”. However, with his reprehensible behaviors, he finally led them down the path of financial ruin.
The prosecution also argues deficiencies in the execution of some administrative procedures obligations related to its activities to the former leader of Celsius. Alex Mashinsky reportedly did not register as a salesperson for the company and as a securities and commodities trader.
Through this lawsuit, the New York prosecutor wants to force Alex Mashinsky to do it repair the financial damage, in particular by returning the illicit funds to the victims of the Celsius collapse and paying the damages. The prosecution wants too to prohibit the defendant to do business in New York.
After the company files for Chapter 11 bankruptcy protection, some Celsius customers may soon get their crypto back stuck in the platform. Will Alex Mashinsky pay out of pocket for the rest of the goods that Celsius will not be able to reimburse its customers?
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