According to the Wall Street Journal, Celsius co-founder Alex Mashinsky was sued by New York Attorney General Letitia James. The government official filed a civil lawsuit against Mashinsky, accusing him of “defrauding investors out of billions of dollars.”
Celsius Co-Founder Could Face Time In Prison?
N.Y. Attorney General James believes that the Celsius co-founder and former CEO gave false statements to his customers. Mashinsky allegedly lied about the company’s financial situation and purposely concealed information from his customers.
Consequently, Celsius investors lost millions of dollars while the company took “risky investments” with their funds. In the meantime, Mashinsky advertised the platform as being “safer than a bank.” According to the report and the lawsuit: