The New York State Attorney General has filed a lawsuit against the former CEO of cryptocurrency lender Celsius, accused of defrauding investors.
According to a new press release, Letitia James is suing Celsius founder Alex Mashinsky, alleging he made misleading statements to investors about numerous aspects of her company and failed to register properly as required by state law.
“As the former CEO of Celsius, Alex Mashinsky promised to lead investors to financial freedom, but led them down the road to financial ruin. The law is clear: making false and unfounded promises and deceiving investors is illegal.
Today we are acting on behalf of thousands of New Yorkers who have been scammed by Mr. Mashinsky to recoup their losses. My office will remain vigilant and ensure that bad actors who seek to take advantage of New York investors are held accountable.”
James claims Mashinksy told clients Celsius would make low-risk investments and only lend assets to reputable companies. However, he “regularly” lent assets to high-risk counterparties and drove investors into “financial ruin.”
If James’s lawsuit prevails, Mashinsky will never be able to do business in New York again and will face an undetermined amount in damages, restitution and disgorgement, according to the press release.
Celsius initially filed for bankruptcy in July 2022, weeks after more than 99% of its native businesses collapsed and customer withdrawals ceased.
At the time, the company cited extreme market volatility as the reason for its closure.
Writer for the news site Essonneinfo. Hélène specializes in writing and journalism, she likes to share information and interesting news with readers. In addition to her journalistic activities, she Hélène is passionate about art and culture, she likes her Alland au mushuh, Godcorvrir Of noorvelleg espostions et asshyster in of the concerts.
