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New York Law Journal: AG James Sues Celsius Network Founder for Allegedly Defrauding Thousands of Cryptocurrency Investors

January 5, 2023

New York Attorney General Letitia James has filed a lawsuit against Celsius Network founder Alex Mashinsky claiming that he made false and misleading statements relating to the safety of the cryptocurrency lending platform. Previously one of the largest digital asset lenders, Celsius filed for bankruptcy last summer. O’Melveny partner Daniel Suvor said that James is sending “a powerful message” with the lawsuit. “Crypto companies will now need to be aware of State Attorneys General, which yield massive power to enforce consumer protection and financial fraud laws. State AGs often have the ability to seek penalties more significant than state financial regulators,” Suvor said.

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