LATEST UPDATES
Card-image-cap

Business | Frauds & Scandals

NY AG Files Lawsuit Against Alex Mashinsky, Alleging He Hid Celsius’ 'Dire Financial Condition'

Jan 05, 2023   •   by Turner Wright   •   Source: Cointelegraph   •   eye-icon 196 views

Alex Mashinsky’s actions leading up to Celsius declaring bankruptcy allegedly contributed to investor losses by misrepresenting the platform’s financial condition to investors.

 

New York Attorney General Letitia James has filed a lawsuit against Alex Mashinsky, alleging the Celsius founder and CEO made numerous “false and misleading statements” which led to investors losing billions. 

 

In a Jan. 5 announcement, the New York Attorney General’s office announced the lawsuit, which allegedly involved defrauding more than 26,000 residents of the U.S. state out of billions of dollars’ worth of crypto. According to James, Mashinsky’s actions leading up to Celsius declaring bankruptcy contributed to investor losses by misrepresenting the platform’s financial condition and failing to personally register as required by state law.

 

“As the former CEO of Celsius, Alex Mashinsky promised to lead investors to financial freedom but led them down a path of financial ruin,” said James. “The law is clear that making false and unsubstantiated promises and misleading investors is illegal. Today, we are taking action on behalf of thousands of New Yorkers who were defrauded by Mr. Mashinsky to recoup their losses.”

 

The lawsuit aimed to ban Mashinsky from “doing business in New York” in the future as well as pay damages, restitution, and disgorgement to affected Celsius investors.

 

About the Author

Turner Wright is a freelance editor and writer for various publications

 

Credit:

The post NY AG Files Lawsuit Against Alex Mashinsky, Alleging He Hid Celsius’ 'Dire Financial Condition' first appeared in Cointelegraph on January 05, 2023

Related items.

Get the App

apple-store  play-store

Connect with us


Proshare is a professional practice focused on delivering research and information services to bridge the gap between investors and markets; by delivery on credible, reliable, and timely engagements through the following areas — Impact Research, Market Intelligence, Strategic Advisory, Stakeholder Relations & Digital Media.