Alex Mashinsky, former CEO and founder of Celsius, at PBWS 2022 – RoyalsBlue.com ©
The lawyers of the founder of Celsius estimate that the complaint of the New York State Attorney demonstrates a ” misunderstanding ” of the activities of the crypto lender and the role of Mashinsky.
The lawyers ofAlex Mashinsky filed a brief Tuesday with the New York State Attorney General Letitia Jameswho earlier this year sued the former director and co-founder of the failed crypto lending platform Celsius for scam.
The complaint borrows baseless conclusions and demonstrates a misunderstanding of Celsius’ activities and Mashinsky’s role in them […] The eventual downfall of Celsius was caused by a series of calamitous external events,” the document states.
The defense requests a dismissal of the complaint and asserts that the complaint fails to state a claim under the Martin Act. “Critically, the accounts earn at issue were not not titles under well-established law, and the complaint does not adequately plead the existence of securities or commodities in Celsius’ business model,” she says.
In his complaint, James stated that Mashinsky promised to lead investors to financial freedom, but ultimately led them on “ the road to financial ruin “.
Founded in 2017, Celsius allowed its users to generate large returns by lending crypto-currencies. The platform filed for bankruptcy last summer. The startup’s former CEO reportedly withdrew $10 million just before its collapse.
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