Celsius Founder Mashinsky Face Fraud Allegations
Alex Mashinsky, ex-CEO of failed crypto lender Celsius Network is facing a fresh lawsuit from New York Attorney General Letitia James. The lawsuit also seeks to ban Mashinsky from making any business operations in New York. Lawsuit Calls Mashinky a Fraud The suit accuses Mashinsky of committing fraud by being untruthful about Celsius’ financial health between 2018 and June 2022. He allegedly defrauded hundreds of thousands of Celsius users, falsely assuring them of the platform’s stability. This was apparently a ploy to keep funds rolling into the company. Celsius reportedly lost hundreds of millions of dollars through unsafe investments. However, the company was able to rake in billions in crypto thanks to Mashinsky’s misleading statements, says the suit. Per the release, the Israeli-American’s false representation of Celsius’s crumbling state affected over 26,000 New York residents. A few cases came up in the suit such as one New Yorker who mortgaged two properties and...