• New York Attorney General Letitia James filed a lawsuit against former CEO of the bankrupt crypto lending platform Celsius Network, Alex Mashinsky, for allegedly defrauding investors out of billions of dollars worth of cryptocurrency.
• The lawsuit argues that Mashinsky made false and misleading statements about the state of Celsius and its investment products, and failed to reveal the company’s financial statements to the investors until the worst hit.
• The lawsuit seeks to ban Mashinsky from doing business in New York, and require him to pay damages, restitution, and disgorgement.

New York Attorney General Letitia James recently filed a lawsuit against Alex Mashinsky, the former CEO of the now-bankrupt crypto lending platform Celsius Network, for allegedly defrauding investors out of billions of dollars worth of cryptocurrency. The lawsuit claims that Mashinsky knowingly misled investors about the state of the company and its investment products, leading to substantial financial losses for those who had put their trust in him.

The lawsuit states that Mashinsky repeatedly made false and misleading statements about the state of Celsius and its investment products while promising investors a safe and profitable investment. Additionally, the lawsuit alleges that Mashinsky failed to register as either a securities or commodities dealer, nor as a salesperson, which is a violation of the law. Furthermore, the lawsuit argues that Celsius lost millions of dollars to risky businesses that included crypto assets, and that the company failed to reveal its financial statements to the investors until it was too late.

In response to the lawsuit, Attorney General James stated: “As the former CEO of Celsius, Alex Mashinsky promised to lead investors to financial freedom but led them down a path of financial ruin. The law is clear that making false and unsubstantiated promises and misleading investors is illegal.” The lawsuit seeks to ban Mashinsky from doing business in New York, and to have him pay damages, restitution, and disgorgement to all affected investors.

The lawsuit underscores the need for investors to do their due diligence before investing in any venture, especially those involving cryptocurrency. As cryptocurrency is still a relatively new and complex asset class, investors should only invest in ventures that they fully understand and are comfortable with, and should never take any investment advice from someone they do not know or trust. Additionally, it is important for investors to be aware of the risks associated with investing in cryptocurrency, and to ensure that they are adequately protected from potential fraud or other losses.

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