{"id":9746,"date":"2023-01-13T15:52:37","date_gmt":"2023-01-13T15:52:37","guid":{"rendered":"https:\/\/cryptoheretostay.com\/?p=9746"},"modified":"2023-01-13T15:52:37","modified_gmt":"2023-01-13T15:52:37","slug":"former-celsius-ceo-sued-for-allegedly-defrauding-customers","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=9746","title":{"rendered":"Former Celsius CEO sued for allegedly defrauding customers"},"content":{"rendered":"<p> <script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n   <\/p>\n<p>New York attorney General Letitia James filed a lawsuit against Alex Mashinsky, the co-founder and former CEO of Celsius Network LLC.<\/p>\n<p>James said that Mashinsky violated the Martin Act and New York\u2019s Executive and General Business Laws by allegedly defrauding investors into depositing billions of dollars into digital asset within the cryptocurrency lending company.<\/p>\n<p>\u201cBetween 2018 and at least June 2022, Defendant Alex Mashinsky engaged in a scheme to defraud hundreds of thousands of investors.\u201d<\/p>\n<h2>Mashinsky allegedly misled customers<\/h2>\n<p>James alleged that Mashinsky did so \u201cby using false and misleading representations to induce\u201d customers into depositing \u201cbillions of dollars in digital assets\u201d with Celsius Network LLC.<\/p>\n<p>Mashinsky served as the \u201cpublic face\u201d of Celsius and promised investors high yields with minimal risk. However, when Celsius struggled to generate enough revenue to pay the promised yields on investors\u2019 deposits, it allegedly adopted significantly riskier investment strategies.<\/p>\n<h2>Finer details of the motion<\/h2>\n<p>The motion seeks to prevent Mashinsky from \u201cengaging in any business relating to the issuance, advertisement, or sale of securities or commodities in New York,\u201d as well as \u201cdirecting Mashinsky to pay damages, restitution, and disgorgement.\u201d<\/p>\n<p>The motion also stated that \u201cNew Yorkers had deposited a total of approximately $440 million on the Celsius platform\u201d as of Dec. 31, 2021.<\/p>\n<p>This was was the result of Mashinsky informing investors that the Celsius earned interest account (EIA) model as \u201csleep to earn.\u201d<\/p>\n<p>\u201cYou don\u2019t have to do anything, you just go to sleep, and every Monday we pay you yield.\u201d<\/p>\n<p>\u00a0<\/p>\n<h3>Read Our Latest Market Report<\/h3>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cryptoslate.com\/former-celsius-ceo-sued-for-allegedly-defrauding-customers\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>New York attorney General Letitia James filed a lawsuit against Alex Mashinsky, the co-founder and former CEO of Celsius Network LLC. James said that Mashinsky violated the Martin Act and New York\u2019s Executive and General Business Laws by allegedly defrauding investors into depositing billions of dollars into digital asset within the cryptocurrency lending company. \u201cBetween [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":9747,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[3],"tags":[],"class_list":["post-9746","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ethereum-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/9746","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9746"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/9746\/revisions"}],"predecessor-version":[{"id":9748,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/9746\/revisions\/9748"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/9747"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9746"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9746"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9746"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}