Ex-Celsius Chief Executive Sued By New York Attorney General For Alleged Investor Fraud
WHAT YOU SHOULD KNOW
- Mashinsky is alleged to have made false and deceptive remarks regarding Celsius’s security, the number of users, and investment tactics in order to bring in investors.
- Banks are heavily regulated by both state and federal government agencies, while Celsius had no such regulatory requirements.
New York Attorney General Letitia James has alleged that Alex Mashinsky, the former CEO of Celsius Network, a cryptocurrency lending platform, deceived hundreds of thousands of investors, including more than 26,000 New Yorkers, out of a large sum of cryptocurrency valued in billions of dollars.
The complaint claims that Mashinsky misled investors, hid Celsius’s worsening financial situation, and neglected to register per state regulations.
Mashinsky, the prominent figure of Celsius, is alleged to have made false and deceptive remarks regarding Celsius’s security, the number of users, and investment tactics in order to bring in investors and continually assert that Celsius was more secure than a bank.
James noted that while banks are heavily regulated by both state and federal government agencies and regularly undergo rigorous examinations, Celsius had no such regulatory requirements. This lack of oversight, he added, has resulted in many people facing financial ruin due to the collapse of Celsius.
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