New York Attorney General Letitia James claims Alex Mashinsky, the former CEO of cryptocurrency lending platform Celsius Network, defrauded hundreds of thousands of investors, including more than 26,000 New Yorkers, out of billions of dollars worth of cryptocurrency.

The lawsuit alleges that Mashinsky lied to investors, concealed Celsius’s deteriorating financial condition, and failed to register as required by state law.

Mashinsky, who was the public face of Celsius, is accused of making false and misleading statements about Celsius’s safety, number of users, and investment strategies in order to recruit investors and repeatedly asserting that Celsius was safer than a bank.

See Also: Did You Invest In Celsius? 5 Reasons You May Have Lost Your Money

However, banks are highly regulated by state and federal government agencies and subject to regular and robust examinations, while Celsius was not subject to such regulatory requirements, James said, adding that the collapse of Celsius has left many individuals in financial ruin.

James seeks to ban Mashinsky from doing business in New York and require him to pay damages, restitution, and disgorgement.

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