- New York Attorney General Letitia James will be suing Celsius CEO Alex Mashinsky.
- “Alex Mashinsky lied to people about the risks of investing in Celsius,” says James.
- James seeks to bar Mashinsky from any business relating to securities or commodities in New York.
Earlier today, New York Attorney General Letitia James’ Office tweeted a post wherein the Attorney General stated that she would be suing the former CEO of crypto platform Celsius, Alex Mashinsky, for defrauding investors. “Alex Mashinsky lied to people about the risks of investing in Celsius, hid its deteriorating financial condition, and failed to register in New York,” claimed James.
The General Attorney further adds that Mashinsky tricked hardworking people into investing their life savings into Celsius, promising big financial returns and claiming the platform was safer than a bank. However, Celsius collapsed earlier this year and according to James, New Yorkers were left in financial ruin.
I’m suing to get New Yorkers their money back and ban Mashinsky from doing business in New York. We will continue to protect people from the risks of investing in cryptocurrency.
It is alleged that Mashinsky propagated several false and misleading statements about Celsius’s security, number of registered users, and even investment strategies to recruit investors. Interestingly, the former CEO repeatedly stated that Celsius was safer than a bank.
According to a government press release, one New York resident mortgaged two of their properties to invest with Celsius. Worse, a disabled veteran lost his funds of $36,000, which had taken him nearly a decade to save up. Moreover, another disabled citizen lost his entire life savings.
As expected the crypto community is thrilled at this news and wishes New York prosecutors all the best in the legal battle against Mashinsky. The community is also enraged by the fact that a US bankruptcy judge ruled that Celsius Network owns most of the crypto customers deposited.
What Attorney General seeks to achieve through this case is to permanently bar Mashinsky from engaging in any business relating to the issuance, offer, or sale of securities or commodities in New York. She will also be attempting to stop him from serving as a director or officer of any company doing business in New York.
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