Celsius CEO Faces Lawsuit by NY Attorney General Over Defrauding Investors
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Former head of crypto lending firm Celsius Network, Alex Mashinsky, is being sued by New York Attorney General, Letitia James, for "defrauding hundreds of thousands of investors out of billions of dollars worth of cryptocurrency."

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The New York State Attorney General's office said in a press release that the now-bankrupt lending giant defrauded over 26,000 New Yorkers, making "false and misleading" statements about Celsius’s safety. Attorney General James said that Mashinsky led investors down a path of "financial ruin."

"Today, we are taking action on behalf of thousands of New Yorkers who were defrauded by Mr. Mashinsky to recoup their losses," James added.

The New York State Attorney General's office noted that Celsius exposed investors' assets to "high-risk counterparties and strategies, many of which resulted in losses that Mashinsky concealed from investors."

Court Orders Celsius to Return $45M in Crypto Stored in Custody Accounts

The regulator wants to permanently bar Mashinsky from engaging in any business relating to the issuance of securities or commodities in New York. Moreover, it also seeks to stop him from serving as a director of any company working in New York.

Celsius filed for bankruptcy under Chapter 11 of the US Bankruptcy Code in July this year. The company says the restructuring will help it "maximize value for all stakeholders." Celsius owes users more than $4.7 billion.

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