Alex Mashinsky’s efforts to quash a civil lawsuit have been denied while Tether celebrated as a class action questioning their reserves was dismissed.
The former chief executive of crypto lending platform Celsius Network, Alex Mashinsky is back on track to face a civil fraud lawsuit after a Supreme Court judge denied his motion to dismiss the case.on Aug. 4 by New York County Supreme Court Justice Margaret Chan denied Mashinsky’s motion to dismiss the suit originally brought by New York Attorney General, Letitia James in January.
Screenshot from denial filing. New York v. Mashinsky, New York State Supreme Court. No. 450040/2023. Source: courts.state.ny.us Celsius filed for Chapter 11 bankruptcy on July 14, 2022, and Mashinsky resigned as CEO in September of that year. Mashinsky's response argued the complaint failed to state a"legally-cognizable" claim against Mashinsky and is otherwise deficient,However, Judge Chan argued there were sufficient allegations to support a plausible inference that Mashinsky's misstatements induced new investors to deposit in Celsius' earn accounts.
The judge has denied the motion to dismiss and has also ordered Mashinsky to file an answer to the complaint within 30 days of the order.
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