{"id":16153,"date":"2023-01-05T20:17:17","date_gmt":"2023-01-05T20:17:17","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/new-york-attorney-general-sues-celsius-co-founder-alex-mashinsky-for-crypto-fraud-bitcoin-news\/"},"modified":"2023-01-05T20:17:17","modified_gmt":"2023-01-05T20:17:17","slug":"new-york-attorney-general-sues-celsius-co-founder-alex-mashinsky-for-crypto-fraud-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/new-york-attorney-general-sues-celsius-co-founder-alex-mashinsky-for-crypto-fraud-bitcoin-news\/","title":{"rendered":"New York Attorney General Sues Celsius Co-Founder Alex Mashinsky for Crypto Fraud \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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On Jan. 5, 2023, the state of New York and attorney general Letitia James filed a lawsuit against Alex Mashinsky, the co-founder and former CEO of Celsius. The lawsuit claims that Mashinsky and Celsius defrauded \u201chundreds of thousands of investors, including more than 26,000 New Yorkers, out of billions of dollars worth of cryptocurrency.\u201d<\/strong><\/p>\n

Former CEO of Celsius Accused of Making False Promises, Misleading Investors<\/h2>\n

The day after Core Scientific detailed<\/a> that it was shutting down 37,000 bitcoin miners owned by Celsius, New York\u2019s Attorney General filed a lawsuit<\/a> against Alex Mashinsky, the former CEO of Celsius. The lawsuit alleges that Mashinsky \u201crepeatedly made false and misleading statements about Celsius\u2019s safety\u201d and that he encouraged investors to \u201cdeposit billions of dollars in digital assets onto the platform.\u201d According to the lawsuit, 26,000 New Yorkers are affected by the Celsius demise and James wants to ban Mashinsky from doing business in New York.<\/p>\n

The lawsuit states:<\/p>\n

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Mashinsky promoted Celsius as a safe alternative to banks while concealing that Celsius was actually engaged in risky investment strategies.<\/p>\n<\/blockquote>\n

The state of New York and attorney general Letitia James have been cracking down on crypto businesses for some time. In June, James warned<\/a> about the crypto industry\u2019s volatility. At the end of Nov. 2022, James also urged<\/a> Congress to ban crypto assets from U.S. retirement accounts. In addition, the New York attorney general targeted the crypto lender Nexo in a lawsuit<\/a> announced at the end of Sept. 2022.<\/p>\n

\u201cAs the former CEO of Celsius, Alex Mashinsky promised to lead investors to financial freedom but led them down a path of financial ruin,\u201d said<\/a> attorney general James. \u201cThe 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 defrauded by Mr. Mashinsky to recoup their losses. My office will stay vigilant and ensure that bad actors trying to take advantage of New York investors are held accountable.\u201d<\/p>\n

The New York-based lawsuit against Mashinsky and his Celsius dealings follows the bankruptcy ruling<\/a> this week that ruled the deposits in high-interest-earning accounts belong to Celsius. Judge Martin Glenn, of a New York-based bankruptcy court, said Celsius owns the rights to the funds rather than the customers who deposited the digital assets on the now-defunct lending platform.<\/p>\n

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Alex Mashinsky<\/a>, Attorney General<\/a>, banks<\/a>, Celsius<\/a>, Celsius bankruptcy<\/a>, ceo<\/a>, Cryptocurrency<\/a>, defrauded<\/a>, false statements<\/a>, financial ruin<\/a>, Fraud<\/a>, Investors<\/a>, Lawsuit<\/a>, Letitia James<\/a>, new york<\/a>, New York Lawsuit<\/a>, New Yorkers<\/a>, risky investments<\/a><\/div>\n<\/div>\n

What do you think about the New York attorney general\u2019s lawsuit against Celsius CEO Alex Mashinsky? Let us know what you think about this subject in the comments section below. <\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist 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 emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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