- Alex Mashinsky believes fraud charges are unfounded
- His lawyers are demanding the case be dismissed
New York State Attorney General Letitia James has said that scandalous Celsius founder Alex Mashinsky defrauded investors, regarding the cryptocurrency lender’s wealth.
But Alex does not agree with such allegations. In response to the lawsuit, he said the fraud allegations were baseless and based on online misinformation.
His lawyers also responded to the New York attorney general’s claim that he misled investors about the financial condition of the crypto lender.
“The complaint spread misinformation about Mashinsky and Celsius Network.
The prosecutor borrows someone else’s unsubstantiated conclusions and demonstrates a lack of understanding of the Celsius business and Maszynski’s role in it.
The bankruptcy filing, made in July, was caused by “catastrophic external events” beyond the control of Celsius.
James cynically picks up snippets of statements and clippings of YouTube videos made to appease investors,” the statement said.
Letitia James is not the first time she has dealt with Maszynski. In January of this year, she filed a lawsuit against the founder of Celsius.
In that statement, the prosecutor alleges that Alex defrauded hundreds of thousands of people by depriving them of cryptocurrency.
It is also reported that the former CEO lied to investors and concealed the true extent of the problems. Because of this, customers continued to invest their money in the platform.