Cryptocurrency

New York Attorney General files lawsuit against Celsius’ Alex Mashinsky for defrauding investors

Hull Invest

New York Attorney General Letitia James lawsuit Former CEO and co-founder of Celsius Network LLC, Alex Mashinski, has misled Celsius investors about billions of dollars in cryptocurrencies.

The lawsuit seeks damages, restitution, and a spit-up payment from Masinski for multiple violations and seeks to be barred from doing business in New York.

The lawsuit alleges that Mashinsky misled investors about the safety of Celsius and tricked them into depositing billions of dollars. He also indicted Mashinsky for misrepresenting and concealing Celsius’s deteriorating financial situation when Celsius lost millions of dollars worth of assets. was not registered as

In the lawsuit, Letitia James also alleges that Mashinski made false and false statements about Celsius’ safety, number of users, and investment strategy to attract investors. During his appearances at cryptocurrency conferences and on social media to promote Celsius, he claimed that Celsius is safer than banks. As reported, many investors lost their money as a result.

This is not the first time the Attorney General has taken action against cryptocurrency companies. As part of her lawsuit, she defendant Nexo Inc. and Nexo Capital Inc. said in September 2022 that they were operating illegally and deceiving investors. The Attorney General also reached a settlement It partnered with cryptocurrency platform BlockFi Lending LLC for offering unregistered securities last June.

Celsius Network filed for Chapter 11 bankruptcy in July 2022 due to the market downturn following the Terra debacle. legal battle Since last month, we have had discussions with Earn platform customers about who owns the funds deposited into their Earn accounts. On January 5, the U.S. Bankruptcy Court ruled that $4.2 billion deposited in Earn Accounts belonged to Celsius.

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