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Ex-Celsius CEO faces lawsuit from NY AG for alleged fraud against 26,000 state residents

Celsius Network

New York State Attorney General Letitia James has filed a legal case against the former CEO of crypto finance company Celsius Network, Alex Mashinsky, alleging that he swindled investors out of billions of dollars worth of crypto.

James has accused Mashinsky of making false and deceiving statements to investors, including lying about the number of users of the platform and falsely asserting that it only made secure, low-risk investments, whereas in reality it actually put investors’ funds in high-risk counterparties and strategies.

The lawsuit also claims that Mashinsky made unfounded promises to investors, leading to financial ruin for 26,000 New Yorkers among the hundreds of thousands of people who were scammed.

Mashinsky, who acted as the public face of the company, had persuaded investors to deposit with Celsius in exchange for high returns in cryptocurrency.

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Judith Faith has been writing about cryptocurrencies and blockchain technology for over five years. She is well versed in the industry and has an extensive network of industry contacts. She is also a frequent contributor to various cryptocurrency publications. With her vast knowledge and experience, she is able to provide insightful and valuable content to her readers. Judith is also an active investor in the cryptocurrency space and has a vested interest in the success of the industry. She is passionate about helping to foster the growth of the industry and believes in the power of blockchain technology to revolutionize the world.