Joe.My.God. LGBT News
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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I’m suing the former CEO of cryptocurrency platform @CelsiusNetwork for defrauding investors out of billions of dollars.
Alex Mashinsky lied to people about the risks of investing in Celsius, hid its deteriorating financial condition, and failed to register in New York.
— NY AG James (@NewYorkStateAG) January 5, 2023
Mashinsky tricked hardworking people into investing their life savings into Celsius, promising big financial returns and claiming the platform was safer than a bank.
Instead, Celsius collapsed and New Yorkers were left in financial ruin.
— NY AG James (@NewYorkStateAG) January 5, 2023
I’m suing to get New Yorkers their money back and ban Mashinsky from doing business in New York.
We will continue to protect people from the risks of investing in cryptocurrency.
— NY AG James (@NewYorkStateAG) January 5, 2023