Former Celsius CEO sued for allegedly defrauding customers

2023-1-13 18:44

New York attorney General Letitia James filed a lawsuit against Alex Mashinsky, the co-founder and former CEO of Celsius Network LLC.

James said that Mashinsky violated the Martin Act and New York’s Executive and General Business Laws by allegedly defrauding investors into depositing billions of dollars into digital asset within the cryptocurrency lending company.

“Between 2018 and at least June 2022, Defendant Alex Mashinsky engaged in a scheme to defraud hundreds of thousands of investors.”

Mashinsky allegedly misled customers

James alleged that Mashinsky did so “by using false and misleading representations to induce” customers into depositing “billions of dollars in digital assets” with Celsius Network LLC.

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.

Finer details of the motion

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 motion also stated that “New Yorkers had deposited a total of approximately $440 million on the Celsius platform” as of Dec. 31, 2021.

This was was the result of Mashinsky informing investors that the Celsius earned interest account (EIA) model as “sleep to earn.”

“You don’t have to do anything, you just go to sleep, and every Monday we pay you yield.”

 

The post Former Celsius CEO sued for allegedly defrauding customers appeared first on CryptoSlate.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Ceocoin (CEO) на Currencies.ru

$ 0.00304614 (+0.00%)
Объем 24H $0
Изменеия 24h: 0.00 %, 7d: 0.00 %
Cегодня L: $0 - H: $0
Капитализация $0 Rank 99999
Доступно / Всего 0 CEO

james general mashinsky york former celsius ceo

james general → Результатов: 49


Фото:

New York Judge Axes Crypto Trading Platform Coinseed Over Dogecoin Malpractice

The Attorney General of New York, Letitia James, on Tuesday ordered the shut down of the crypto exchange platform, Coinseed over several reports of fraud and investors’ rights abuse. Specifically, Coinseed engaged in the unlawful conversion of crypto assets deposited on its exchange platform to Dogecoin without the permission of the owners.  Coinseed first came […]

2021-9-15 14:17


New York Attorney General Warns Against Crypto Investing, says It ‘Could Cause Devastating Losses’

New York Attorney General Letitia James has issued a warning against investing in cryptocurrencies. “There are extreme risks in investing in virtual or cryptocurrencies,” she said. According to her, it is imperative that they act to protect the wallets of the investors, and as such, “I’m warning New Yorkers and investors across the country that […] The post New York Attorney General Warns Against Crypto Investing, says It ‘Could Cause Devastating Losses’ first appeared on BitcoinExchangeGuide.

2021-3-3 18:59


Фото:

Bitfinex Faces Legal Action From NY Attorney General: Here’s What This Means

The New York Office of the Attorney General (AG) wants to take a closer look into the business operations of Bitfinex and related stablecoin issuer Tether (USDT). According to a legal petition filed with the Supreme Court of New York, the NY Attorney General Office of Letitia James is applying for a court order to investigate Bitfinex’s suite of interrelated companies (including its umbrella firm iFinex and Tether Holdings Limited) for “ongoing fraud” to the tune of $850 million.

2019-4-27 01:30


Bitfinex CEO Statements Express Worry Bitcoin Price Could Fall to $1,000 BTC/USD

Today it was not a good day for virtual currencies. Most of them are registering large losses after the scandal in which Bitfinex and Tether (USDT) are involved. The New York State Attorney General Letitia James explained that Bitfinex mismanaged customer’s funds, something that could have had very negative effects in the crypto market. Can […]

2019-4-27 00:33