NY Attorney General Sues Celsius Co-Founder for Defrauding Investors

• The New York attorney general has filed a lawsuit against Alex Mashinsky, the co-founder and former CEO of Celsius Network LLC, for allegedly defrauding investors.
• Mashinsky is accused of violating the Martin Act and New York’s Executive and General Business Laws by allegedly misleading investors into depositing billions of dollars in digital assets with the cryptocurrency lending company.
• The motion seeks to prevent Mashinsky from engaging in any business relating to the issuance, advertisement, or sale of securities or commodities in New York, as well as directing Mashinsky to pay damages, restitution, and disgorgement.

The New York Attorney General Letitia James has filed a lawsuit against Alex Mashinsky, the co-founder and former CEO of Celsius Network LLC, for allegedly defrauding investors. James claims that Mashinsky violated the Martin Act and New York’s Executive and General Business Laws through his misleading of investors into depositing billions of dollars in digital assets with the cryptocurrency lending company.

Mashinsky served as the „public face“ of Celsius and promised investors high yields with minimal risk. However, when Celsius struggled to generate enough revenue to pay the promised yields on investors‘ deposits, it allegedly adopted significantly riskier investment strategies. This put many investors in a vulnerable position, as they now faced the risk of losing their money without any significant returns.

In response, James has requested that Mashinsky be prevented from engaging in any business related to the issuance, advertisement, or sale of securities or commodities in New York. She has also asked for Mashinsky to be required to pay damages, restitution, and disgorgement. This would help to compensate the investors who were misled and lost their money as a result of Mashinsky’s alleged lies.

The motion also aims to protect future investors from suffering similar losses. To that end, it seeks to ensure that Mashinsky and Celsius Network LLC are prevented from engaging in any activity that would be deemed illegal under the Martin Act and New York’s Executive and General Business Laws.

The motion is a testament to the New York Attorney General’s commitment to protecting investors and ensuring that justice is served. It is hoped that, if successful, the motion will not only provide justice to the investors who have been defrauded but will also act as a deterrent to any future misconduct.