CRYPTO COLLAPSE

New York AG Sues Ex-Celsius CEO for Allegedly Duping Investors Out of Billions

The AG’s lawsuit seeks to prevent former Celsius CEO Alex Mashinsky from serving as the director or officer of any company that does business in New York.

Former Celsius CEO and co-founder Alex Mashinsky has been sued for fraud by the New York attorney general over the crypto company that went bankrupt in an effort to sharply restrict Mashinsky’s business prospects in the state. The former CEO, whose company froze withdrawals in June 2022, conned hundreds of thousands of investors into putting billions into crypto by lying about the company’s safety, the lawsuit by Attorney General Letitia James says. Mashinsky and other Celsius executives withdrew millions right before the company’s collapse while hiding the firm’s internal financial turmoil, according to the lawsuit. If successful, the lawsuit would prevent Mashinsky from serving as the director or officer of any company in New York. James also seeks damages and restitution for the customers allegedly duped by Mashinsky.