NEW YORK (AP) — The former CEO of failed cryptocurrency lending platform Celsius Network misled investors, leading them “down a path of financial ruin,” New York Attorney General Letitia James said Thursday in a lawsuit. against Alex Mashinsky who seeks to ban him. to do business in the state.
In his lawsuit filed in Manhattan state court, James said Mashinsky, the co-founder of Celsius, "engaged in a scheme to defraud hundreds of thousands of investors" by getting them to put billions of dollars in digital assets into his property. platform.
The lawsuit alleges that Mashinsky promised big profits and said that Celsius was as safe as a bank, but in the meantime made risky investments and did not tell investors when those investments failed.
Celsius filed for bankruptcy last year, after stopping their operations in June.
Emails seeking comment were sent to Mashinsky's lawyers.
The Celsius glitch was part of a series of problems in the cryptocurrency industry last year, along with the Terra stablecoin collapseand the implosion of the FTX lending platform.
