NY Attorney General aims to ban Alex Mashinsky from doing business in New York and make him pay damages and restitution.
New York Attorney General Letitia James filed a lawsuit against Celsius Network co-founder and former CEO Alex Mashinsky.
According to the press release published by Letitia James, Celsius' co-founder allegedly “made false and misleading statements” regarding Celsius' safety, thus encouraging investors to deposit billions of dollars.
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Letitia James claims that Mashinksy defrauded “hundreds of thousands of investors” out of the billions worth of crypto, including over 26,000 New Yorkers.
In the press release, Attorney General Letitia James noted that it was time for Mashinsky to take responsibility for the mistakes he made. James stated:
Alex Mashinsky promised to lead investors to financial freedom but led them down a path of financial ruin. The 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.
Nevertheless, James claims that Mashinsky “misrepresented and concealed” Celsius' crumbling financial condition and failed to register himself as a securities and commodities dealer and “a salesperson for Celsius.”
The New York Attorney General’s press release highlighted that on several occasions, Mashinsky claimed that Celsius is “safer than a bank.”
Mashinsky made numerous false and deceptive statements about Celsius’s safety, number of users, and investment strategies to recruit investors, and repeatedly asserted that Celsius was safer than a bank.
With the lawsuit, the New York Attorney General aims to ban Mashinksy from doing any business related to selling, offering or issuing securities or commodities in New York.
On top of that, James aims to bar the former Celsius CEO from serving as an officer or a director of any company operating in New York. Lastly, Letitia James intends to “secure disgorgement of any proceeds derived from Mashinsky’s unlawful conduct, as well as damages and restitution for investors.”
