By Jonathan Stempel NEW YORK (Reuters) - Alex Mashinsky, the founder and former chief of the now-bankrupt cryptocurrency lender Celsius Network, must face a lawsuit by New York Attorney General Letitia James accusing him of civil fraud, a Manhattan…
Highlights
- Alex Mashinsky must face a lawsuit by New York Attorney General Letitia James accusing him of civil fraud.
- Justice Margaret Chan said James sufficiently alleged Mashinsky defrauded investors by touting Celsius as a safe alternative to banks.
- Celsius was founded in 2017 and had offered 17% interest on some deposits, but had a $1.19 billion balance sheet deficit when it sought Chapter 11 protection in July 2022.
- Mashinsky has pleaded not guilty to criminal fraud charges brought by the U.S.
- Justice Department tied to Celsius’ demise.
- He also faces related civil lawsuits by the Securities and Exchange Commission, U.N.
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