{"id":72227,"date":"2023-01-06T12:03:02","date_gmt":"2023-01-06T10:03:02","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=72227"},"modified":"2025-09-08T13:48:36","modified_gmt":"2025-09-08T10:48:36","slug":"new-york-attorney-general-sues-former-celsius-ceo-for-defrauding-investors","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/new-york-attorney-general-sues-former-celsius-ceo-for-defrauding-investors\/","title":{"rendered":"New York attorney-general sues former Celsius CEO for defrauding investors"},"content":{"rendered":"<p>The New York State Attorney General&#8217;s Office filed suit against former Celsius Network CEO Alex Mashinsky, accusing him of defrauding investors of billions of dollars.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">I&#8217;m suing the former CEO of cryptocurrency platform <a href=\"https:\/\/twitter.com\/CelsiusNetwork?ref_src=twsrc%5Etfw\">@CelsiusNetwork<\/a> for defrauding investors out of billions of dollars.<\/p>\n<p>Alex Mashinsky lied to people about the risks of investing in Celsius, hid its deteriorating financial condition, and failed to register in New York.<\/p>\n<p>\u2014 NY AG James (@NewYorkStateAG) <a href=\"https:\/\/twitter.com\/NewYorkStateAG\/status\/1611023481285578752?ref_src=twsrc%5Etfw\">January 5, 2023<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u00abMashinsky repeatedly made false and misleading statements about Celsius&#8217;s safety, distorted and concealed the platform&#8217;s deteriorating financial condition\u00bb, <a href=\"https:\/\/ag.ny.gov\/press-release\/2023\/attorney-general-james-sues-former-ceo-celsius-cryptocurrency-platform-defrauding\">as stated in the department&#8217;s press release<\/a>.<\/p>\n<\/blockquote>\n<p>The office sought restitution for losses and the return of funds to customers, as well as a ban on doing business in the state. The filing notes that the suit was brought on behalf of thousands of New Yorkers.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u00abAs the former Celsius CEO, Alex Mashinsky promised investors financial freedom, but led them to financial ruin\u00bb, the authorities said.<\/p>\n<\/blockquote>\n<p>On June 13, 2022, the crypto lender <a href=\"https:\/\/u1f987.com\/en\/news\/celsius-token-plunges-50-amid-withdrawal-suspension\">paused withdrawals, exchanges and transfers<\/a> between accounts. A month later the platform <a href=\"https:\/\/u1f987.com\/en\/news\/celsius-files-for-bankruptcy-protection\">filed for bankruptcy<\/a> under Chapter 11 of the U.S. Bankruptcy Code.<\/p>\n<p>In September, Mashinsky <a href=\"https:\/\/u1f987.com\/en\/news\/alex-mashinsky-resigns-as-celsius-network-chief-executive\">left the post as Celsius&#8217;s chief executive<\/a>.<\/p>\n<p>According to the Financial Times, by the end of December Celsius&#8217;s expenditures on proceedings, paying lawyers and consultants had reached $53 million.<\/p>\n<p>In December, Celsius Network <a href=\"https:\/\/u1f987.com\/en\/news\/celsius-network-seeks-extension-of-creditor-claims-filing-deadline\">asked<\/a> the court to extend the deadline for creditors to file claims.<\/p>\n<p>Read ForkLog&#8217;s bitcoin news in our <a href=\"https:\/\/telegram.me\/forklog\" target=\"_blank\" rel=\"nofollow noopener\">Telegram<\/a> \u2014 cryptocurrency news, rates and analysis.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The New York State Attorney General&#8217;s Office filed suit against former Celsius Network CEO Alex Mashinsky, accusing him of defrauding investors of billions of dollars.<\/p>\n","protected":false},"author":1,"featured_media":72228,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1348,748],"class_list":["post-72227","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-celsius-network","tag-new-york"],"aioseo_notices":[],"amp_enabled":true,"views":"26","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/72227","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=72227"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/72227\/revisions"}],"predecessor-version":[{"id":72229,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/72227\/revisions\/72229"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/72228"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=72227"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=72227"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=72227"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}