#crypto #Celsius #CelsiusNetwork #cryptocurrencyexchange
A US court in New York City has filed a lawsuit against Celsius Network co-founder and former CEO Alex Maszynski.
Maszynski is accused of defrauding hundreds of thousands of cryptocurrency investors of the equivalent of billions of dollars. The former CEO is also accused of making false claims about the reliability of Celsius, in order to encourage investors to continue investing huge sums on the platform.
The NYAG lawsuit seeks to ban Maszynski from doing any business in New York state, as well as damages.
The suit was preceded by several other lawsuits by Attorney General Leticia James. Last year, Letitia James sued Nexo for defrauding investors and illegal activities, a lawsuit that ended in a $1 million settlement with BlockFi.
Before Celsius declared bankruptcy in July 2022, the company was considered one of the largest cryptocurrency lenders. The company had assets and liabilities of up to $10 billion and around 100,000 creditors. Withdrawals for users were frozen before the company declared bankruptcy, and to this day customers cannot withdraw their funds.
The risky investments have left the company with huge losses that have yet to be recovered. Celsius’ management, on the other hand, provided misleading information about the company’s state of affairs, misleading investors.
A major investigation into all the actions of the former CEO of Celsius is currently being carried out by judicial representatives.
All investors who suffered losses from Celsius are invited to submit statements in order to assist the investigation. The greater the number of applications, the more complete the picture will be.
The total value of the 600,000 accounts held by Celsius in the Earn program was approximately $4.2 billion in July 2022, of which $23 million was in stabelcoins.
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