In January, New York State Attorney General Letitia James sued Alex Maszynski.
Alleging that the businessman repeatedly made false statements and misled Celsius investors, ultimately defrauding them of billions of dollars.
James accused Maszynski of misrepresentation and withholding information about the financial condition of the credit platform.
Mashinsky denied the allegations in the attorney general’s complaint, calling them without merit, and filed a motion in New York Supreme Court to dismiss the suit.
The defense of the Celsius founder said that the prosecutor’s charges are based on misinformation spread on the Internet about the cryptocurrency lender and its management.
The lawsuit against the cryptocurrency lender demonstrates a fundamental misunderstanding of the business of the bankrupt platform and the role Maszynski played in it.
Attorneys added: James placed the blame for the bankruptcy on Maszynski, although the platform’s collapse was caused by external events that the Celsius founder had no control over.
Alex Maszynski’s defense also denied the accusation that Celsius failed to register as a broker-dealer, offering unregistered securities to clients.
Lawyers assured: the complaint does not adequately argue that Celsius’ business model used securities or commodities.
Attorneys cited several precedents to prove that there is no investment agreement between the company and depositors unless an interest rate is set in advance.
In March, Celsius announced a partial unfreeze of deposits in custodial accounts and began the process of withdrawing funds from U.S. resident depository accounts.