Former Celsius CEO Fights Fraud Complaints

The former Celsius Network founder Alex Mashinsky asked the courts to dismiss the New York State complaint against him. Just in case you don’t know, these allege the fact that he defrauded investors out of billions of dollars. Check out the latest reports about this below.

The new filing with the New York Supreme Court states that Mashinsky argues the fact that the complaint should be tossed out because it relies on misinformation and other issues.

The motion stated the following:

“The Complaint, which parrots misinformation online about Mashinsky and Celsius Network, LLC (“Celsius”) and borrows others’ baseless conclusions, demonstrates a fundamental misunderstanding of Celsius’s business, and Mashinsky’s role therein.”

It’s been also revealed the fact that the New York State Attorney General (NYAG) Letitia James filed the complaint against Mashinsky in January, months after Celsius went bankrupt.

She alleged that Mashinsky made some pretty misleading statements to investors about key details of his company and failed to properly register as required under state law.

James previously said in a statement the following:

“As the former CEO of Celsius, Alex Mashinsky promised to lead investors to financial freedom but led them down a path of financial ruin. The law is clear that making false and unsubstantiated promises and misleading investors is illegal.”

back in February, we were revealing that the Celsius platform was using customer deposits to fund withdrawals, according to the latest news.

According to the latest reports coming from he online publication Daily Hodl, the collapse of crypto lender Celsius shows that the firm was using customer deposits to pay for withdrawals, according to an independent examiner.

In a new court filing with the United States Bankruptcy Court in the Southern District of New York, bankruptcy examiner Shoba Pillay, a former federal prosecutor, said that Celsius used customer funds to meet withdrawals in certain cases, particularly in the days leading up to the bankruptcy filing.