– New York Attorney General Letitia James has filed a lawsuit against Alex Mashinsky, the former CEO and co-founder of Celsius Network LLC, for allegedly misleading investors about billions of dollars of cryptocurrency.
– The lawsuit demands damages, restitution, and disgorgement, as well as a ban from Mashinsky from doing business in New York, citing multiple violations.
– Mashinsky allegedly misled investors about Celsius’s safety to lure them into depositing billions of dollars, misrepresented and concealed Celsius’s deteriorating financial condition, and failed to register as a Celsius salesperson or a securities and commodities dealer.

The Attorney General of New York, Letitia James, has filed a lawsuit against Alex Mashinsky, the former CEO and co-founder of Celsius Network LLC, for allegedly misleading investors about billions of dollars of cryptocurrency. The lawsuit seeks to hold Mashinsky accountable for his alleged actions, demanding damages, restitution, and disgorgement, as well as a ban from him from doing business in New York.

According to the lawsuit, Mashinsky is accused of making false and deceptive statements about Celsius’s safety, its number of users, and its investment strategies to attract investors. During his appearances at cryptocurrency conferences and social media to promote Celsius, he allegedly claimed that Celsius was safer than a bank, and as a result, many investors lost funds. Additionally, Mashinsky is accused of misleading investors about Celsius’s safety to lure them into depositing billions of dollars, misrepresenting and concealing Celsius’s deteriorating financial condition, and failing to register as a Celsius salesperson or a securities and commodities dealer.

The lawsuit states that Mashinsky’s alleged actions „have caused immense harm to investors and the larger cryptocurrency community“. It also claims that Mashinsky has been „unjustly enriched“ and seeks to make him pay for the damages he caused.

This is not the first time the New York Attorney General has taken action against crypto firms. In the past, it has gone after companies such as Bitfinex and Tether for allegedly manipulating the crypto markets.

The lawsuit against Mashinsky is an important step in protecting investors from unscrupulous actors in the cryptocurrency space. It is a reminder that investors need to do their due diligence and research projects before investing, as there are still many bad actors in the space who are looking to take advantage of unsuspecting investors.