NY Sues Crypto Mogul For Alleged Multi-Billion Scam

CNBC reports:

New York AG Letitia James sued former Celsius Network CEO Alex Mashinsky on Thursday, alleging that Mashinsky defrauded hundreds of thousands of investors out of billions of dollars at the now-bankrupt cryptocurrency exchange. Mashinsky publicly assured his customers that investing with Celsius was both safer and more lucrative than leaving their investments in a traditional bank.

At one point, deposits at the crypto exchange were valued at $20 billion, according to the complaint. But Mashinsky’s statements were false, James alleges, and became part of his efforts to hide deep losses on risky crypto-lending investments. The action is civil, not criminal, and was brought under the Martin Act, New York state’s wide-ranging securities law.

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