Tuesday, May 21, 2024
Latest News
OpenAI uses Scarlett Johansson’s voice for ChatGPT without permission: All details Haiti’s Gangs Grow Stronger as Kenyan-Led Force Prepares to Deploy Funerary procession to be held for late president in Iran's northwest | India News Saudi Arabia's national carrier orders more than 100 new Airbus jets 'It's not fair': Wasim Akram agrees with Irfan Pathan, slams ECB and England players for leaving IPL early | Cricket News Second Henrietta Lacks family lawsuit can proceed against pharmaceutical company, judge rules California Assembly passes bill allowing cannabis cafes Dibrugarh: Dibrugarh cracks down on unauthorised e-rickshaws | Guwahati News BTS’ RM, NewJeans, Aespa and Treasure to go head to head in the K-pop charts with a clutch of new releases 'He had never asked me a single question': Gautam Gambhir hails Shah Rukh Khan as 'best owner' | Cricket News Microsoft unveils AI-capable Windows PCs said to be faster than Apple’s MacBook Air 2024 showdown: Trump tops Biden in April campaign cash dash Check-Dam: Opposition Leaders Condemn Check-Dam Construction in Kerala | Coimbatore News Big IPOs seen making a comeback in India as stock boom continues TOI Health News Morning Briefing | FLiRT variants identified in Kolkata, Harvard study finds when to take aspirin during heart attack, simple tests to check purity of milk, FAQs on heat stroke answere... OpenAI pauses ChatGPT voice ‘eerily similar’ to Scarlett Johansson Scarlett Johansson Said No, but OpenAI’s Virtual Assistant Sounds Just Like Her Sean Hannity: This is not justice IMD: IMD forecasts heavy rain in 8 districts from Friday | Bhubaneswar News China’s GPS rival BeiDou prepares to take off as Beijing moves to strengthen home-grown satellite navigation Australia and New Zealand sending planes to evacuate nationals from New Caledonia's unrest Trump's social media account shares a campaign video with a headline about a 'unified Reich' Illegal Construction: Illegal construction in public park: HC directs Moradabad DM & police to act | Allahabad News Government norms to monitor quality of spices exports IPL 2024, Qualifier 1: Kolkata Knight Riders, Sunrisers Hyderabad look to put on a show | Cricket News Scarlett Johansson says that OpenAI approached her to use her voice Moose kills man trying to take photos of her newborn calves in Alaska Class 12 General Marksheets: Class 12 general marksheets distribution date in Gujarat | Ahmedabad News Today in the past: Interesting things that happened on May 20 | 'The way MS Dhoni...': Gautam Gambhir opens up on KKR-CSK rivalry | Cricket News
HomeBusinessWho is Alex Mashinsky, the man behind the alleged Celsius crypto fraud?

Who is Alex Mashinsky, the man behind the alleged Celsius crypto fraud?

Alex Mashinsky, a co-founder of bankrupt crypto lender Celsius Network who prosecutors allege bilked investors out of billions, is a serial entrepreneur who has portrayed himself as a modern-day Robin Hood.
Mashinsky, 57, fraudulently promoted Celsius as a safe alternative to banks, while concealing that it was losing hundreds of millions of dollars in risky investments, according to a lawsuit filed on Thursday by New York Attorney General Letitia James.
The civil lawsuit seeks to ban Mashinsky from doing business in New York and have him pay damages, restitution and disgorgement.
James’ lawsuit is the latest black eye for the crypto sector, which has been rocked by accusations against FTX crypto exchange founder Sam Bankman-Fried. The former mogul, who has been accused of cheating investors and causing billions of dollars in losses, on Tuesday pleaded not guilty.
Mashinsky, a native of Ukraine whose family emigrated to Israel, decided to move to New York after he took a trip to the city in 1988, he told a Forbes podcast.
“I looked around and I’m like, I’m never going back,” he said.
Since then, he has founded eight companies, including Arbinet, which went public in 2004, and Transit Wireless, which provides Wi-Fi to the New York City subway.
Mashinsky claims to have created Voice over Internet Protocol (VoIP), a precursor to ride-sharing app Uber, as well as an idea for a cryptocurrency that preceded bitcoin.
Mashinsky became involved in crypto in 2017, when his venture fund Governing Dynamics brought on blockchain company MicroMoney as a strategic partner. He founded Celsius the same year.
In his teens, Mashinsky bought confiscated goods like hairdryers and VCRs from customs auctions at Israel’s Ben Gurion Airport and resold them for a profit, according to a 1999 article in the defunct tech publication Industry Standard.
Mashinsky had aspirations at the time to start a business for whole-body transplants: “Give an old person a new body – keep the head, keep the spine, and re-create the rest,” he said.
The executive served in the Israeli army from 1984-1987, where he trained as a pilot and served in the Golani infantry units, according to his personal website.
Mashinsky has raised over $1.5 billion for various ventures that generated more than $3 billion when he and other investors cashed out of them, according to his website, which also says he holds more than 50 patents.
“The greatest risk is not taking one,” the home page reads.
In hundreds of interviews, blog posts and livestreams as the public face of Celsius, Mashinsky promised its customers that they would receive high returns if they deposited digital assets on his platform, with minimal risk, according to the New York AG’s lawsuit.
Neither Mashinsky nor his lawyer immediately responded to requests for comment on Thursday.
Celsius pledged investors would obtain returns of up to 17%, among the highest in the industry. “We take it from the rich,” the lawsuit quoted Mashinsky as saying.
By early 2022, it had amassed $20 billion in digital assets from investors. But the company struggled to generate enough revenue to pay the promised yields and moved into much riskier investments, according to the claim.
The company extended hundreds of millions of dollars in uncollateralized loans, and invested hundreds of millions more in unregulated decentralized finance platforms, the lawsuit said.
Mashinsky, who wore t-shirts with slogans such as “banks are not your friends,” continued to falsely represent to investors that Celsius was generating high yield through low-risk investments, according to the legal filing.
In an “Ask Mashinsky Anything” YouTube video on June 10, the entrepreneur said “Celsius has billions in liquidity.” Two days later, it paused investor withdrawals “in order to stabilize liquidity and operations.”
Celsius filed for Chapter 11 protection from creditors last July 13, listing a $1.19 billion deficit on its balance sheet.

Source link



Please enter your comment!
Please enter your name here

Most Popular

Recent Comments

Latest News