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Crowdfund Insider: Crypto Firms Will Need to Be Aware of State Attorneys General, which Have Massive Power to Enforce Consumer Protection Laws, Legal Expert ExplainsJanuary 10, 2023
New York Attorney General Letitia James has filed a lawsuit against Celsius Network founder Alex Mashinsky accusing him of “defrauding thousands of investors out of billions of dollars in digital funds” and making ‘false and misleading statements about the Celsius platform’s safety.” Daniel R. Suvor, a partner at O’Melveny & Myers LLP and co-chair of the firm’s State Attorneys General Investigations and Litigation Group, said that James’ office is “clearly sending a powerful message that says making false and unsubstantiated promises and misleading investors is illegal.” Suvor also noted that this “is just the beginning. Other states will likely take steps to move beyond securities laws and apply broader consumer protection laws. Any false or misleading statements, or the failure to disclose key information that encourages investors, can result in massive penalties.”
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