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<h2 id="header-0">According to the legal action brought by the attorney general of New York, Celsius CEO Alex Mashinsky deceived investors about his cryptocurrency loan service.</h2><p>The founder of the cryptocurrency-focused company <a href="https://www.coingabbar.com/en/crypto-currency-news/what-will-celsius-earn-customers-get" rel="noopener noreferrer nofollow">Celsius </a>Network, Alex Mashinsky, was named in a civil lawsuit brought by the state of New York&#39;s attorney general on Thursday. The lawsuit accuses Mashinsky of planning to defraud hundreds of investors by persuading them to deposit billions of dollars&#39; worth of digital assets with his crypto-lending product. Mashinsky is accused of violating the Martin Act of the state, which gives Attorney General Letitia James broad discretion to prosecute civil and criminal claims concerning securities fraud and other offences.</p><h3 id="alex-mashinsky-of-celsius-sued">Alex Mashinsky of Celsius sued</h3><p>The complaint claims that the former CEO of Celsius deceived investors about the lender&#39;s financial viability and concealed its fragile situation when it lost hundreds of millions of dollars on hazardous and dubious trades. <a href="https://www.coingabbar.com/en/crypto-currency-news/alex-mashinsky-believes-bitcoin-and-ethereum-will-reach-all-time-highs-in-the-coming-months" rel="noopener noreferrer nofollow">Mashinsky </a>falsely claimed that Celsius was a safer alternative to banks since it only lent funds to reputable businesses.</p><p>Ms. James, a well-known Democrat, was quoted as stating the following while discussing Celsius&#39; fraudulent operations and its subsequent bankruptcy:</p><p>Investors were led to financial devastation by Alex Mashinsky, who had claimed to bring them to financial freedom. Making fictitious and unsupported promises and deceiving investors are against the law, according to the legislation.</p><p>The office of Ms. James announced that as of December 31, 2021, more than 26,000 New Yorkers have invested around $440 million in the now-defunct Celsius Network.</p><h4>Serious Penalties Are Coming</h4><p>Ms. James is demanding that Mashinsky be barred from engaging in any business activity in the state of New York that is associated with the issuance or sale of securities and commodities, in addition to asking for compensation and damages. She also wants to stop the former CEO from assuming any leadership positions within companies operating in the state.</p><p>Alex Mashinsky published Celsius in 2017 and promoted it as a safe and risk-free investment choice. Over the course of five years, the business grew quickly, becoming as one of the leading crypto lenders and eventually managing more than $20 billion in assets. The company declared bankruptcy in July after the value of cryptocurrency fell and withdrawals were halted.</p>

New York AG Sues Celsius Ex-CEO Alex Mashinsky

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