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New York's attorney general is suing ex-Celsius boss Alex Mashinsky for defrauding investors.
In a Thursday statement, New York Attorney General Letitia James alleged that Mashinsky "promised to lead investors to financial freedom but led them down a path of financial ruin."
Celsius was a crypto lending platform that went bust last year. It allowed users to deposit cash and earn returns on their digital assets.
But in June, it stopped withdrawals, citing "extreme market conditions." A month later, it filed for bankruptcy.
Today's lawsuit claims Mashinksy defrauded hundreds of thousands of investors out of billions of dollars worth of cryptocurrency.
"Today, we are taking action on behalf of thousands of New Yorkers who were defrauded by Mr. Mashinsky to recoup their losses," the statement added.
This is a breaking news story and will be updated.