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Founder and ex-CEO of Celsius, Alex Mashinsky, sued by the New York Attorney General

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zer0requiem
@zer0requiem
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Hey Peeps!

On January 5th, 2023, the New York Attorney General announced, via a press release, that the Founder and ex-CEO of Celsius, Alex Mashinsky, was being sued for "defrauding investors".

Back in June 2022, Celsius stopped withdrawals for customers, and then on July 13th the crypto exchange filed for Bankruptcy.

Alex Mashinsky then stepped down as CEO of Celsius on September 27, 2022.

The lawsuit would permanently bar Alex Mashinsky from ever doing business in the State of New York again.

The Attorney General's office is also seeking a fine against Mashinsky, and a way for customers to recoup their losses.

Here is the official lawsuit that was filed to the Supreme Court of the State of New York: https://ag.ny.gov/sites/default/files/mashinsky_complaint.pdf

"Between 2018 and at least June 2022, Defendant Alex Mashinsky engaged in a scheme to defraud hundreds of thousands of investors, including more than 26,000 New Yorkers, by using false and misleading representations to induce them to deposit billions of dollars in digital assets with his cryptocurrency lending company Celsius Network LLC, which he founded and led as chief executive officer. Mashinsky promoted Celsius as a safe alternative to banks while concealing that Celsius was actually engaged in risky investment strategies." - Letitia James, Attorney General for the State of New York

Letitia James also went on Twitter to let everyone know that she was suing Alex Mashinsky:

"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." - Leticia James, Attorney General for the State of New York

The last quote is something that struck me as it came off as a swipe against cryptocurrency in general, saying that it is risky and implying investors need to be protected.

Perhaps I am being a little sensitive about this.

At the end of the day, I hope this lawsuit brings investors some safety and customers their money back.

Do you think this is good news?

Will this help Celsius customers get their money back?

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See ya!

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