Former Celsius CEO Sued for Defrauding Investors Out of Billions in Crypto

• The New York Attorney General Letitia James filed a lawsuit against the former CEO of Celsius Network, Alex Mashinsky, for defrauding investors out of billions of dollars worth of cryptocurrency.
• The lawsuit claims that Mashinsky made false and misleading statements about the state of Celsius and its investment products while knowingly delivering financial ruin to its investors.
• The lawsuit seeks to ban Mashinsky from doing business in New York and require him to pay damages, restitution, and disgorgement.

New York Attorney General Letitia James has recently announced the filing of a lawsuit against Alex Mashinsky, the former CEO of the now-bankrupt crypto lending platform Celsius Network, for defrauding investors of billions of dollars worth of cryptocurrency. The lawsuit, which was filed in the Supreme Court of New York, states that Mashinsky made false and misleading statements about the state of Celsius and its investment products, which resulted in the financial ruin of thousands of investors.

According to the lawsuit, Mashinsky allegedly failed to register as a securities and commodities dealer and as a salesperson, while also failing to properly disclose the financial state of Celsius to its investors. Furthermore, the lawsuit claims that Mashinsky put the investments of thousands of people at risk by investing in risky businesses such as crypto assets.

The lawsuit seeks to ban Mashinsky from conducting business in New York, as well as to require him to pay damages, restitution, and disgorgement. Attorney General James stated, “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.”

The lawsuit is being seen as a major step forward for the cryptocurrency industry, as it demonstrates the willingness of the authorities to crack down on fraudulent activities and protect investors from exploitation. It also serves as a reminder to investors to be wary of investing in crypto assets, as the industry is still largely unregulated and there is always the potential for fraud.