• Former Celsius CEO Alex Mashinsky is back on track to face a civil fraud lawsuit after a New Yor judge denied his motion to dismiss the case.
• Stablecoin issuer Tether has lauded a legal victory after a U.S. District Court dismissed a class action lawsuit regarding its reserves.
• China vows to crack down on telecoms fraud using crypto and AI.
Celsius’ Mashinsky Fraud Suit
The former chief executive of crypto lending platform Celsius Network, Alex Mashinsky, is back on track to face a civil fraud lawsuit after a New York judge denied his motion to dismiss the case. A court order issued 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. In response, Mashinsky argued the complaint failed to state a “legally-cognizable” claim against him and is otherwise deficient, among other arguments . 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 denied the motion to dismiss and also ordered Mashinsky to file an answer to the complaint within 30 days of the order. Additionally, both the Commodity Futures Trading Commission and Securities and Exchange Commission have issued their own civil cases against Mashinsky in July amid his criminal charges while Federal Trade Commission fined him $4.7 billion for allegedly “duping” users with false promises of profit from investments in Celsius products.
Tether Class Action Suit Dismissed
Stablecoin issuer Tether has celebrated legal victory after U.S District Court dismissed class action lawsuit filed by Matthew Anderson and Shawn Dolifka in 2021 alleging that defendants did not maintain same amount of reserves as Tether tokens in circulation . Judge Laura Taylor Swain of U.S District Court for Southern District of New York issued order dismissing said suit thus allowing Tether tokens holders go ahead with their operations without any worries about legality issues concerning reserves related matters .
China To Use Crypto And AI To Crack Down On Telecoms Fraud
China has vowed take strong measures towards cracking down telecoms fraud through use of modern technologies like cryptocurrency as well as artificial intelligence (AI) . According Chinese government officials , they plan roll out anti-fraud system powered blockchain technology which will enable them collect data from multiple sources detect suspicious activities quickly accurately curb fraudulent activities before they occur or even spread further . This comes at time when country facing increasing number scams related telecom services such as fake calls voicemails etc being sent unsuspecting users . As part tackling this problem authorities are planning launch pilot project September which should help reduce such incidents significantly once fully implemented later year .
Celsius Bankruptcy Filing
Celsius Network filed for Chapter 11 bankruptcy on July 14, 2022 after which its former CEO Alex Mashinksy resigned from his post in September same year . Ever since then , company been facing various lawsuits from different legal bodies including US Commodity Futures Trading Commission , Securities Exchange Commission Federal Trade Commission over alleged financial malpractices deceiving customers into investing their money various projects offered by Celsius promise high returns despite being highly risky ventures themselves .
This article discussed two major events involving cryptocurrency world namely former CEO Celsius Network’s civil fraud lawsuit dismissal denial by NY State Supreme Court Judge Margaret Chan as well class action suit involving Tether stablecoin token having been thrown out US District judicial body respectively along China’s new initiative using blockchain technology AI tackle telecom fraudsters country’s borders