Weekend Wrap: Celsius' Mashinsky Fraud Lawsuit Hits, Tether Class Lawsuit Dismisses & More
Ex-Celsius CEO Denied Remand, Tether Celebrates Victory in Minor Court, and China Stands Committed to cracking down on telecommunications fraud using crypto and AI.
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Celsius's Mashinsky Motion to Dismiss Denied
Former chief executive of crypto lending platform Celsius Network, Alex Mashinsky, is back on track to face a civil lawsuit for fraud after a Supreme Court judge dismissed his motion to dismiss the case.
A court order issued August 4 by New York County Supreme Court Judge Margaret Chan denied Mashinsky's motion to dismiss the lawsuit originally filed by New York Attorney General Letitia James , in January.
Screenshot of denial folder. New York vs. Mashinsky, Supreme Court of the State of New York. No. 450040/2023. Source: courts.state.ny.usCelsius filed for Chapter 11 bankruptcy on July 14, 2022, and Mashinsky resigned as CEO in September of that year.
Mashinsky's response argued that the complaint did not indicate a "legally recognizable" claim against Mashinsky and was otherwise deficient, among other arguments.
However, Judge Chan argued that there were enough allegations to support a plausible inference that Mashinsky's misrepresentations induced new investors to deposit into Celsius' earnings accounts.
The judge denied the motion to dismiss and also ordered Mashinsky to file a response to the complaint within 30 days of the order.
The CFTC and SEC filed their own civil lawsuits against Mashinsky in July amid criminal charges brought by the former CEO. In addition, the Federal Trade Commission (FTC) imposed $4.7 billion in fines on...
Ex-Celsius CEO Denied Remand, Tether Celebrates Victory in Minor Court, and China Stands Committed to cracking down on telecommunications fraud using crypto and AI.
to summarize
Join us on social networks
Celsius's Mashinsky Motion to Dismiss Denied
Former chief executive of crypto lending platform Celsius Network, Alex Mashinsky, is back on track to face a civil lawsuit for fraud after a Supreme Court judge dismissed his motion to dismiss the case.
A court order issued August 4 by New York County Supreme Court Judge Margaret Chan denied Mashinsky's motion to dismiss the lawsuit originally filed by New York Attorney General Letitia James , in January.
Screenshot of denial folder. New York vs. Mashinsky, Supreme Court of the State of New York. No. 450040/2023. Source: courts.state.ny.usCelsius filed for Chapter 11 bankruptcy on July 14, 2022, and Mashinsky resigned as CEO in September of that year.
Mashinsky's response argued that the complaint did not indicate a "legally recognizable" claim against Mashinsky and was otherwise deficient, among other arguments.
However, Judge Chan argued that there were enough allegations to support a plausible inference that Mashinsky's misrepresentations induced new investors to deposit into Celsius' earnings accounts.
The judge denied the motion to dismiss and also ordered Mashinsky to file a response to the complaint within 30 days of the order.
The CFTC and SEC filed their own civil lawsuits against Mashinsky in July amid criminal charges brought by the former CEO. In addition, the Federal Trade Commission (FTC) imposed $4.7 billion in fines on...
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