Alex Mashinsky, the former CEO of crypto lending platform Celsius, has been sued by the state of New York for repeatedly making false and misleading statements about Celsius security to defraud hundreds of thousands of investors of billions of dollars in crypto assets, Bloomberg reported. “By the end of 2021, Mashinsky ultimately defrauded more than 26,000 New Yorkers who invested approximately $440 million,” said New York State Attorney General Letitia James. As a result, New York State’s lawsuit against Mashinsky seeks to permanently bar him from engaging in ties to the state. any issue, offer or sale of securities or commodities, prevent him from serving as a director or officer of any company doing business in New York, and demand the return of any proceeds of his alleged illegal conduct, as well as damages and compensation to his clients.