Ex-Celsius CEO Alex Mashinsky is fighting against NYAG

Alex Machinsky, former CEO of Celsius, has filed a motion to dismiss the New York Attorney General’s complaint claiming that the complaint made unsubstantiated conclusions.

After Celsius collapsed, the company and its executives became embroiled in various legal battles with regulators, creditors, and investors.

Machinsky again fights back against the allegations

On Tuesday, attorneys for Alex Machinsky filed a motion to dismiss the complaint of New York Attorney General (NYAG) Letitia James.

In January, the NYAG sued Mashinsky for defrauding him of billions in cryptocurrency from more than 26,390 New Yorkers. However, Mashinsky filing It alleges that aside from a New York resident who pledged to invest in Celsius, the NYAG complaint does not identify other New York Celsius users.

NYAG also alleged that Mashinksky failed to register as a sales representative for the cryptocurrency lending platform and as a trader in securities and commodities.

But, Mashinsky’s legal team responded, “When a user wanted to open an earning account, Percentage was the counterparty, not Mashinsky. As such, he was not a merchant.”

Safer than the bank?

Furthermore, James Mashinsky has been accused of repeatedly asserting that percentage points were safer than banks. But the court filing filed by the former Celsius CEO says:

“The alleged statements in which Mashinsky compared the security of a degree to the safety of a bank or broker-dealer of securities are unimportant because they are just an opinion or a mere hoax. These statements do not guarantee a specific result but are opinions that cannot be proven.”

The cryptocurrency lending platform filed for Chapter 11 bankruptcy in July 2022, mainly due to the contagion impact of the collapse of the Terra Luna ecosystem.

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