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New York Attorney General is suing Celsius co-founder Alex Mashinsky for crypto fraud-

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Veröffentlicht am 05.01.2023

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On January 5, 2023, the state of New York and the Attorney General Letitia James submitted a lawsuit against Alex Mashinsky, the co -founder and former CEO of Celsius. The lawsuit claims that Mashinsky and Celsius "hundreds of thousands of investors, including more than 26,000 New Yorkers, have betrayed cryptocurrency worth billions of dollars". Former CEO of Celsius is accused of making false promises and misleading investors The day after Core Scientific in detail that 37,000 Bitcoin miners were closed by Celsius, the New York general attorney against Alex Mashinsky, the former CEO of Celsius. In the lawsuit ...

New York Attorney General is suing Celsius co-founder Alex Mashinsky for crypto fraud-

On January 5, 2023, the state of New York and the Attorney General Letitia James submitted a lawsuit against Alex Mashinsky, the co -founder and former CEO of Celsius. The lawsuit claims that Mashinsky and Celsius "hundreds of thousands of investors, including more than 26,000 New Yorkers, have cheated cryptocurrency worth billions of dollars".

former CEO of Celsius is accused of making false promises and investors misguided

The day according to Core Scientific dass detailed 37,000 Bitcoin-Miner owned by Celsius, the New York General Prosecutor submitted a

" Rel = "noopener"> against Alex Mashinsky, the former CEO by Celsius. In the lawsuit, it is claimed that Mashinsky has "repeatedly made false and misleading statements about Celsius' security" and investors "to store billions of dollars of digital assets on the platform". According to the lawsuit, 26,000 New Yorkers are affected by the Celsius accommodation and James will ban Mashinsky to do business in New York.

The lawsuit says:

Mashinsky Celsius promoted banks as a safe alternative while hiding that Celsius actually pursued risky investment strategies.

The state of New York and the Attorney General Letitia James have been tough against crypto companies for some time. In June James warned about the volatility of the volatility of Crypto industry. At the end of Nov. 2022 also James Congress forbids crypto-assets from US pension accounts. In addition, the New York general prosecutor targeted the crypto loan nexo

"As a former CEO of Celsius, Alex Mashinsky promised to lead investors to financial freedom, but led her to a path of financial ruin." said Attorney General James. "The law is clear that it is illegal to make false and unfounded promises and to deceive investors. Today we take measures in the name of thousands of New Yorkers who have been cheated by Mr. Mashinsky to compensate for their losses. My office will remain vigilant and ensure that bad actors are trying to take advantage of New York investors."

The lawsuit based in New York and his business with Celsius follows the this week decided that the deposits belong to Celsius. Judge Martin Glenn from an insolvency court based in New York said Celsius had the rights to the funds and not the customers who have stored the digital assets on the credit platform that has no longer existed.

Jamie Redman

Jamie Redman is the news manager at Bitcoin.com News and a Journalist for Financial Technology living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com news about the disruptive protocols that arise today.

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