Alex Mashinsky, the former CEO of Celsius Network, a major cryptocurrency lending platform, has filed a motion to dismiss the New York Attorney General’s (NYAG) lawsuit that says he scammed 26,000 New Yorkers. Mashinsky says that the accusations made by the NYAG are not true and that he will fight them hard.
False Accusations
Mashinsky has said that the accusations made by the NYAG are completely false and have no basis in fact. He has said that Celsius Network has always been honest with its users and follows all the rules and regulations set by regulatory bodies. Mashinsky has also brought up the fact that Celsius Network has been inspected more than once and has always passed.
According to him, the NYAG has a grudge against him and Celsius Network and is trying to make an example of him to show how powerful it is. He has said that the NYAG’s accusations are part of a larger plan to stop growth and competition in the cryptocurrency business.
Move to Throw Out
Mashinsky’s lawyers have filed a motion to throw out the NYAG’s lawsuit, saying that it doesn’t make a claim that can lead to relief. The motion also says that the NYAG’s accusations are based on false and missing information and that the lawsuit doesn’t have any proof to back up its claims.
The NYAG’s lawsuit goes against the principle of separation of powers because it wants to regulate a national business that is already heavily regulated by federal agencies. The motion says that the NYAG is trying to take over the jobs of these government organizations, which is against the Constitution. It also says that the NYAG’s lawsuit is unconstitutional.
What’s Next for Celsius Network?
The result of the NYAG’s lawsuit against Mashinsky and Celsius Network will have big effects on the cryptocurrency business as a whole. If the NYAG’s claims are proven to be true, it could mean that crypto lending sites will be looked at more closely and have stricter rules put on them.
However, if Mashinsky and Celsius Network can disprove the accusations, it may be viewed as a victory for the cryptocurrency industry and a signal that regulators should not overstep their bounds.
