Alex Mashinsky, co-founder and former CEO of bankrupt cryptocurrency lending platform Celsius Network, has responded to a lawsuit brought against him by New York Attorney General Letitia James . According to the filing, the lawsuit was deficient in presenting the fact s and legal arguments of the case and should be dismissed.
James claims in her lawsuit on behalf of the people of the state of New York that Mashinsky defrauded more than 26,000 New York residents out of billions of dollars, specifically by making false statements about the company's financial condition. Mashinsky 's response called the lawsuit "parroting misinformation " that showed a lack of understanding of Celsius' business, and culled claims from Mashinsky's 180 weekly YouTube appearances. Additionally, the lawsuit allegedly did not take into account circumstances beyond Mashinsky's control namely, a downturn in the cryp to market. The response also accused the lawsuit of applying the Martin Act, New York's strict "blue sky" securities laws and other statutes cited in the seven counts in the case. The response states:
"Because the complaint fails to establish legally identifiable claims against Mashinsky and is otherwise defective, it should be dismissed in its entirety." James' lawsuit against Mashinski was announced Jan. 5 and amended in March. noting, at least for Mashinsky's response , that the lawsuit doesn't name Celsius as a defender, just Mashinsky. Celsius declared bankruptcy on July 13, 2022, after suspending withdrawals a month earlier. Despite Celsius reaching settlements with decentralized finance market makers Compound , Aave and Maker on the eve of filing for bankruptcy, depositors still haven't received their money.
