New York Attorney General sues Celsius Founder Alex Mashinsky

Alex Mashinsky, founder and former CEO of the now-defunct crypto bank Celsius, has been sued by New York Attorney General Letitia James.

[{"selector":"#anim-25f2efdd-1242-4c30-817b-ccb43d72dc55 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(31.249999886225726%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-f0e0e018-25d4-426f-9084-4c0de3f786da","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-31ca098c-c2ed-4a91-aeb4-60e4b54e7f36","keyframes":{"transform":["translate3d(-115.14196%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

The New York Attorney General alleges that Mashinsky misled investors about the financial health of Celsius, resulting in significant losses for these investors.

[{"selector":"#anim-49ff6b57-c765-44fa-8137-52ae716a8b3c [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(31.249999886225726%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-52a5e8ea-9bfa-4a94-92eb-2badb4b437f2","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-852bde75-149a-4dad-a8ff-ea5abf5c7f89","keyframes":{"transform":["translate3d(-115.14196%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

New York Attorney General Letitia James has accused Mashinsky of making multiple intentionally deceptive statements that resulted in billions of dollars in losses for investors.

[{"selector":"#anim-bb31550b-50fa-4f90-9bbe-9e7e13153985 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(31.249999886225726%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-5bc3314c-39ab-4d44-865b-92d0e783acb6","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-7103cc62-3d79-4501-8c6f-4dd7f0614e87","keyframes":{"transform":["translate3d(-115.14196%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

According to James, Mashinsky spread false information through public appearances, interviews, and social media posts.

[{"selector":"#anim-bd4417bb-47ab-4afb-9609-bcf4d59ea13d [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(31.249999886225726%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-481e4fba-fbc6-4763-93c2-45853653d452","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-0a0026a6-2a87-4231-96bb-ddeb0c02c2e4","keyframes":{"transform":["translate3d(-115.14196%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

James also pointed out that customers of Celsius did not have the same protections as those who use traditional financial institutions because Celsius was not subject to the same regulatory standards and requirements.

[{"selector":"#anim-1d321707-8d52-4bf6-a65c-d69160dc946c [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(31.249999886225726%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-f54dd36d-286a-4c57-a2e7-ff6023ee0035","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-6abe98b5-4dbd-44f2-8ab9-7be5ee1fba71","keyframes":{"transform":["translate3d(-115.14196%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

When it filed for bankruptcy, Celsius had 600,000 accounts in its Earn program with a market value of $4.2 billion.

[{"selector":"#anim-5e65f3a3-6bed-4144-8668-13ca003cd3e9 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(31.249999886225726%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-ce13ea41-927c-4ef3-b3e8-4e2122bce893","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-945fdf0c-f1e4-4ab7-8ec7-f87302c633d1","keyframes":{"transform":["translate3d(-115.14196%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

This total included $23 million in stablecoins. Additionally, Celsius reported a $1.2 billion gap between its assets and liabilities.

[{"selector":"#anim-4738f4c6-a55e-43b4-a1ed-bf683cab6206 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(31.249999886225726%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-880ffddc-1d76-4d7f-9ae3-962a0b788d2a","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d9e652ff-2bfa-4618-895a-ccf1c96028bd","keyframes":{"transform":["translate3d(-115.14196%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

This total included $23 million in stablecoins. Additionally, Celsius reported a $1.2 billion gap between its assets and liabilities.

[{"selector":"#anim-46153e13-1013-4465-8ff8-9f17491e2248 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(31.249999886225726%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-388e874e-cef1-4efd-a13b-2e6f8311e4ea","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ab9812b6-50c8-4226-87b5-2624998537e7","keyframes":{"transform":["translate3d(-115.14196%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

James, posted on Twitter:

[{"selector":"#anim-0cb447f8-7014-436a-bcfc-5d2a5d419f88 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(31.249999886225726%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] “I’m suing the former CEO of cryptocurrency platform @CelsiusNetwork for defrauding investors out of billions of dollars. Alex Mashinsky lied to people about the risks of investing in Celsius, hid its deteriorating financial condition, and failed to register in New York.”