NY sues over alleged fraud at failed crypto lender Celsius

NEW YORK (AP) — New York Attorney General Letitia James is suing the former CEO of the failed cryptocurrency lending platform Celsius Network, saying he misled investors. The lawsuit filed Thursday seeks to ban Alex Mashinsky from doing business in the state. James says Mashinsky, a co-founder of Celsius, encouraged investors to put billions of dollars’ worth of their digital assets in his platform. The lawsuit alleges that Mashinsky promised hefty returns and said Celsius was as safe as a bank, but meanwhile was engaging in risky investments and not telling investors when those investments failed. Celsius filed for bankruptcy last year, after halting its operations in June. Emails seeking comment were sent to Mashinsky’s lawyers.