New York sues Celsius Network founder Mashinsky, alleges fraud


Celsius Network logo and representations of cryptocurrencies are seen in this illustration taken, June 13, 2022. REUTERS/Dado Ruvic/Illustration

NEW YORK (Reuters) -New York's attorney general on Thursday sued Celsius Network founder Alex Mashinsky, claiming he schemed to defraud hundreds of thousands of investors by inducing them to deposit billions of dollars with his now-bankrupt cryptocurrency lending platform.

Mashinsky was accused of promoting Celsius as a safe alternative to banks, while concealing the mounting losses from risky investments that contributed to its collapse, according to a complaint filed by Attorney General Letitia James in a New York state court in Manhattan.

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