Celsius Co-Founder Alex Mashinsky Sued by New York Attorney General
New York Attorney General Letitia James has filed a lawsuit against Alex Mashinsky, co-founder and former CEO of cryptocurrency exchange Celsius, alleging he defrauded customers of billions. According to the Wall Street Journal, Celsius co-founder Alex Mashinsky was sued by New York Attorney General Letitia James. The government official filed a civil lawsuit against Mashinsky.
Details of the Lawsuit Against Alex Mashinsky
New York Attorney General Letitia James sued Celsius cofounder and former CEO Alex Mashinsky on Thursday, alleging he defrauded customers of billions. The lawsuit alleges that Alex Mashinsky, the founder and former chief of the now-bankrupt cryptocurrency lender Celsius Network, must face a lawsuit by New York Attorney General. For years, the Celsius founder, Alex Mashinsky, 57, misled customers into depositing their crypto savings on the platform, promising that it was as safe as a traditional bank.
New York Attorney General Letitia James has filed a lawsuit against Alex Mashinsky, alleging the Celsius founder and former CEO made numerous “false and misleading statements” to investors.
Attorney General James Seeks to Ban Mashinsky
Attorney General James’ lawsuit seeks to ban Mashinsky from doing business in New York and require him to pay damages, restitution, and disgorgement. “As the former CEO of Celsius, Alex Mashinsky promised to lead investors to financial freedom but led them down a path of devastation,” stated Attorney General James.
What This Means for Celsius Customers
This lawsuit adds to the already complex situation for Celsius customers who have been affected by the company's bankruptcy. The outcome of the lawsuit could potentially impact the recovery of funds for those who had deposited crypto on the Celsius platform.