Alex Mashinsky of Celsius denies charges of fraud

Alex Mashinsky

Alex Mashinsky, former CEO and founder of Celsius, at PBWS 2022 – ©

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.

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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.

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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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