Bloomberg Tax
Jan. 5, 2023, 3:28 PM

Ex-Celsius CEO Mashinsky Duped Crypto Investors, NY Claims (1)

Erik Larson
Erik Larson
Bloomberg News

Former Celsius Network Ltd. Chief Executive Officer Alex Mashinsky, whose once high-flying crypto lender went bankrupt last year, was sued for fraud by the New York attorney general — the latest fallout from turmoil in the industry.

Mashinsky, who co-founded Celsius, duped hundreds of thousands of investors out of billions of dollars of cryptocurrency by repeatedly making false and misleading statements about the lender’s safety, according to a suit filed Thursday in Manhattan. The alleged scheme ran from 2018 to June 2022, when Celsius froze withdrawals.

“Alex Mashinsky promised to lead investors to financial freedom but led them down ...