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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