• The New York Attorney General, Letitia James, has filed a lawsuit against the former CEO and co-founder of Celsius Network LLC, Alex Mashinsky, for defrauding investors.
• The lawsuit alleges that Mashinsky misled investors about Celsius’s safety and misrepresented and concealed Celsius’s deteriorating financial condition.
• The lawsuit demands Mashinsky pay damages, restitution, and disgorgement and be barred from doing business in the state of New York.
The Attorney General of New York, Letitia James, has recently taken action against Celsius Network LLC, a cryptocurrency firm, and its former CEO and co-founder, Alex Mashinsky. James has filed a lawsuit against Mashinsky for misleading investors about billions of dollars of cryptocurrency.
The lawsuit alleges that Mashinsky misled investors about Celsius’s safety in order to lure them into depositing billions of dollars. He also misrepresented and concealed Celsius’s deteriorating financial condition when the network lost assets worth millions of dollars. Furthermore, Mashinsky did not register as a Celsius salesperson or a securities and commodities dealer. During his appearances at cryptocurrency conferences and social media to promote Celsius, he claimed that the network was safer than a bank, which many investors lost funds as a result.
The lawsuit demands Mashinsky pay damages, restitution, and disgorgement, in addition to being barred from doing business in the state of New York. This is not the first time the Attorney General has taken action against crypto firms. In her lawsuit, Letitia James also claimed that Mashinsky made false and deceptive statements about Celsius’s safety, its number of users, and its investment strategies to attract investors.
The Attorney General’s office is seeking to hold Mashinsky accountable for his alleged fraudulent activities. If found guilty, Mashinsky could face severe financial penalties and jail time for his actions. In addition, the Attorney General’s office is looking to protect investors from future harm by preventing Mashinsky from engaging in any similar activities in the future.
This case is yet another example of the need for proper regulation of the cryptocurrency industry. It is essential that investors are protected from fraudulent activities and that the industry is held to the same standards as the traditional financial markets. The Attorney General’s office is committed to protecting investors and ensuring that those who violate the law are held accountable.