A class action lawsuit has been filed in the United States (USA) state of New Jersey for Celsius (CEL), a financial services provider on cryptocurrency trading.
Celsius Sued for Cheating Customers
CEO and executive directors of Celcius, which halted all client transactions due to “extreme market conditions” on 12 June and filed for bankruptcy on 14 July; He is accused of making money from the sale of unregistered securities and violating stock market law provisions.
Earlier, lawyers for crypto lender Celsius revealed that the company has half a million investors with close to $5 billion in debt. A new lawsuit has been filed on behalf of all investors who purchased CEL tokens between February 9, 2018 and July 13, 2022.
In the file prepared by the US law firm Bragar Eagel & Squire PC;
Celsius CEO Alexander Mashinsky and executive directors Shlomi Leon, David Base and Alan Jeffrey Carr allegedly failed to comply with the Securities Act provisions by selling unregistered securities. Celsius also engaged in acts designed to deceive retail investors, defendants said. Said to have violated the provisions of the Exchange Act, Celsius caused customers to purchase Celsius Financial Products at artificially inflated prices.
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