Ex-Celsius CEO must respond to NY lawsuit
Alex Mashinsky, the founder and former CEO of Celsius Network, a centralized crypto lender that folded in 2022, has been directed by a Manhattan state court judge to respond to a lawsuit initiated by New York Attorney General Letitia James. The lawsuit alleges civil fraud, claiming that Mashinsky misled investors by portraying Celsius Network as a safe banking alternative while withholding its risks and significant investment losses. Judge Margaret Chan, overseeing the case, found evidence suggesting a link between Mashinsky’s actions and the financial losses suffered by investors. James contends that Mashinsky misrepresented Celsius Network’s financial stability and investment safety and harmed investors. You might also like: Former Celsius CEO Mashinsky to be released on $40m bail Specifically, the lawsuit asserts that Mashinsky’s false claims about the lender’s financial health and investment security played a role in the financial lo...