The ex-CEO of Celsius Network was sued

Representatives of the CoinDesk publication reported that a new case has appeared in America that will attract the attention of the cryptocurrency community. There will be a trial again. Again, the authorities accuse a person of fraud and deception of investors, which has already become familiar to the world of cryptography. This time the defendant was the former CEO of Celsius Network Alex Mashinsky.

The court of the state of New York, which shows high activity in conducting investigative cases in the field of the cryptocurrency market, accused Mashinsky of defrauding investors. According to them, the exchange, operating on the principle of decentralized finance, deceived all its customers.

Letitia James, who holds the position of Attorney General of the State of New York, has already filed a lawsuit against Alex Mashinsky, which means that the case will soon begin to gain serious momentum.

According to Letitia, the ex-CEO repeatedly circumvented US laws and repeatedly misled clients of his exchange. According to the Attorney General of New York, Mashinsky distorted information about the state of affairs in the company, which falls under the concept of "fraud of investors."

The case of Alex Mashinsky may not compare to what we are now seeing in the case of FTX's Sam Bankman-Freed, but Letitia James says that the ex-CEO of Celsius Network scammed hundreds of thousands of investors.

Mashinsky promised high profits to his clients, which was able to stimulate the receipt of a large amount of funds into the account. In addition, Alex said that the security of Celsius Network is at a high level and they do not have to worry about their money. As a result, instead of the financial freedom that Alex promised his clients, he gave them financial ruin.

Today, the US Attorney General called for the US authorities to ban the former director of Celsius Network from doing business in the country, since people who defraud hundreds of thousands of investors should not have this opportunity and should be punished.

Earlier it became known that they want to force the company of Alex Mashinsky to pay all the money that he took from his clients. The court of the state of New York will further demand full compensation for all losses caused to investors. Letitia James reports that they have already opened an investigative case against the ex-CEO of Celsius Network. They will do everything possible to punish the culprit and return the money to the victims.

In addition, Letizia asked all those who suffered also not to sit idly by and help them with obtaining new useful information. She said that investors can write as many complaints and statements as possible, which should contribute to the investigation.