- Alex Mashinsky believes fraud allegations are unfounded
- His lawyers want the case closed.
New York State Attorney General Letitia James reportedthat controversial Celsius founder Alex Mashinsky was defrauding investors about the fortune of a crypto lender.
However, Alex does not agree with such accusations. In response to the lawsuit, he said that the fraud claims were baseless and based on misinformation on the internet.
His lawyers also responded to the New York Attorney General’s claim that he misled investors about the crypto lender’s financial condition.
“The complaint spreads misinformation about Mashinsky and the Celsius Network. The prosecutor borrows other people’s unfounded conclusions and demonstrates a lack of understanding of the Celsius business and the role of Mashinsky in it. The July bankruptcy filing was triggered by “catastrophic external events” beyond Celsius’s control. James cynically picks up snippets of statements and clippings of YouTube videos made to appease investors.” — written in the statement.
This is not the first time Letitia James has dealt with Mashinsky. 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 their cryptocurrencies. It is also reported that the ex-CEO lied to investors and hid the true scale of the problems. Because of this, customers continued to invest their money in the platform.