BlocksInform
Alex Mashinsky is charged with fraud by New York State Attorney Letitia James. According to the prosecutor general James trial filed on Thursday, mashinsky "promised to lead investors to financial freedom, but led them on the way to financial ruin".
The crypto lender went bankrupt in July 2022 soon after the implosion of terrausd (ust) and terra luna (luna), the falling prices of digital assets and the elimination of over $40 billion from the crypto marketplace.
Mashinsky later stepped down as CEO of the company amid reports of massive withdrawals from Celsius custodial wallets by Mashinsky himself and other top-ranking executives.
Attorney General James argued that Mashinsky continued to lure investors to lay down billions of crypto assets in spite of the company losing millions of dollars in risky investment strategies. According to James, Mashinsky has not managed to register as a broker in securities and raw materials.
The act clearly indicates that it is illegal to make false and unfounded promises and mislead investors. Today, we are acting on behalf of thousands of people in New York who have been cheated by Mr. In order to recover their losses. My office will stay vigilant and ensure that bad actors trying to take advantage of New York investors are held accountable.
– Public Prosecutor Letitia James.
The trial against Mashinsky is aimed at prohibiting the founder of Celsius from doing business in New York. The lawsuit initiated by Attorney General James is also based on damages, rebates and restitution.
$4.2B in accumulation accounts. Not to the investors.
Justice Martin Glenn ruled that $4.2 billion in crypto assets deposited in degrees Celsius with accounts are the property of the bankrupt crypto lender. The decision means that some 600,000 account holders in the degrees Celsius earnings program will have to wait until bankruptcy, which may take months or years.
The court enters into, under unambiguous Celsius operating conditions, and submitted to every reserved defense, only when the assets of cryptocurrency (including stableoins, detailed below) have been deposited into vesting accounts, cryptomonetary assets have become the property of celsius; and the cryptocurrency assets remaining in the gain accounts at the date of the petition have become the property of the debtors' bankruptcy assets (the "successions").
The crypto lender under siege is expected to have a restructuring plan before the bankruptcy court by February 15, 2023.
