New York Attorney General Letitia James sued Alex Mashinski, co-founder and former CEO of cryptocurrency lending platform Celsius, (company who is now bankrupt), alleging that “defrauded hundreds of thousands of investors” on your cryptocurrency exchange.
(See: Lessons that the FTX case leaves for the crypto ecosystem in Colombia).
“As the former CEO of Celsius, Alex Mashinsky promised to lead investors to financial freedom, but led them to ruin,” said today the attorney general it’s a statement.
The demand seeks ban Mashinsky do business in NY and require you to pay damages, restitutions and returns.
(See: FTX: founder of the crypto platform pleads not guilty to fraud).
“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 scammed by Mashinsky out of recouping their losses.”, James added.
(See: FTX bankruptcy: keys to the case that impacted the world of crypto).
Celsius is a lending platform cryptocurrencies where investors can deposit their cryptocurrencies in exchange for promises of high returns on those digital assets and Mashinsky was the public face of this company that filed for bankruptcy in July 2022.
Mashinsky resigned from his position as Executive Director in September 2022 and is no longer employed by Celsius or involved in the management of the company, a Celsius spokesperson said. Celsius to CNBC.
“Mashinsky repeatedly claimed that Celsius was safer than a bank. However, banks are highly regulated by state and federal government agencies and are subject to regular and rigorous testing, while Celsius was not subject to such requirements.”stressed the statement of the Prosecutor’s Office.
(See: After the FTX crisis, are we facing the end of cryptocurrencies?).
In 2022, the cryptocurrency marketwhich had hit all-time highs during the pandemic, plummeted.