New York Attorney General sues Celsius Network founder for defrauding investors

The Attorney General of New York has sued Celsius Network founder – Alex Mashinsky. The former CEO of the crypto lending platform has been pulled up for defrauding investors. The New York AG General Letitia James alleged that Mashinsky failed to register as per the state law, hid the financial condition of the firm, and lied to investors.

Additionally, the lawsuit stated that over 26,000 New York residents had invested in the platform and lost their cryptocurrency. In the press release, the Attorney General stated that the former executive had promised “financial freedom” to investors, but gave them “financial ruin”. AG Letitia James further said,

“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.”

Notably, this action comes a day after Celsius won the rights over Earn users’ crypto funds.

The story is still developing.