Alex Mashinsky, the founder of Celsius, has responded in a unique and engaging manner to the lawsuit filed against him by the New York Attorney General (NYAG), Letitia James. The NYAG accuses Mashinsky of defrauding investors of hundreds of millions of dollars by running an unregistered securities and commodities broker-dealer. It is worth noting that over 26,300 New York residents utilized the Celsius Network platform.
In a strong rebuttal to the allegations made by the NYAG, Alex Mashinsky has dismissed them as false and baseless. He maintains that the NYAG is repeating inaccurate information and drawing erroneous conclusions. Mashinsky has refuted the accusations and placed blame on external factors that were beyond his and Celsius’s control.
According to Mashinsky, Celsius’s temporary suspension of withdrawals and subsequent bankruptcy filing resulted from a liquidity crisis. He denied wrongdoing and emphasized that Celsius has always prioritized its users’ best interests and operated in good faith. He firmly maintains his innocence in the matter.
Alex Mashinsky, the CEO of Celsius Network, has responded to the accusations leveled against him by the New York Attorney General with confidence and determination. Despite the severity of the allegations, Mashinsky is resolute in his defense of himself and Celsius against what he perceives as unfounded charges.
The New York Attorney General has accused Alex Mashinsky, CEO of Celsius Network, of mishandling the company’s finances. According to the NYAG, Mashinsky’s actions led to the Celsius Network’s exposure on the FTX cryptocurrency exchange, which subsequently failed under Sam Bankman-Fried (SBF) leadership. The NYAG also alleges Mashinsky’s actions exposed the crypto lender to Do Kwon’s Terra LUNA.
Mashinsky and the company’s founders argue that Celsius could not prevent the platform’s failure. According to Mashinsky’s motion to dismiss, Celsius invested a significant amount of money into Do Kwon and Sam Bankman-Fried’s ventures that were not fraudulent at the time and could not have been anticipated to fail.