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Weekend Wrap: Celsius’ Mashinsky fraud suit is on, Tether class suit dismissed and more

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The former Celsius CEO has been denied a lawsuit dismissal, Tether celebrates a minor court victory and China vows to crack down on telecoms fraud using crypto and AI.

Celsius' Mashinsky motion to dismiss denied

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.

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.

13e9cc98-69b1-4779-b439-a1dd7254bb8d.jpgScreenshot 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, 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 has denied the motion to dismiss and has also ordered Mashinsky to file an answer to the complaint within 30 days of the order.

The CFTC and SEC issued their own civil cases against Mashinsky in July amid the former CEO’s criminal charges. Moreover, the Federal Trade Commission (FTC) issued $4.7 billion in fines to Celsius for allegedly “squandering billions in user deposits” after “duping” users.

Judge dismisses Tether class action suit

Stablecoin issuer Tether has lauded a legal victory after a U.S. District Court dismissed a class action lawsuit regarding its reserves on Aug. 4.

Judge Laura Taylor Swain of the U.S. District Court for the Southern District Of New York issued an order dismissing the class action lawsuit filed by Matthew Anderson and Shawn Dolifka in 2021.

The complaint claimed that the defendants did not maintain the same amount of reserves as Tether tokens in circulation.

It's a good Friday.#Tether and @Bitfinex Win Comprehensive Legal Victory as U.S. District Court Dismisses Class Action Lawsuit

The Court correctly held that plaintiffs’ complaint lacked any “plausible allegations of injury” because it includes no facts showing that “USDT had a…

— Paolo Ardoino (@paoloardoino) August 4, 2023

Reporting on the result, Tether stated “The dismissal of the entire class action at this very early stage of the proceedings underscores the fact that the plaintiffs’ claims lacked any legal merit.”

Tether CTO Paolo Ardoino called it a “good Friday.”

China cracks down on telecom fraud, targeting crypto

The Chinese government has reportedly announced plans to crack down on overseas telecom fraud, and has pointed the finger directly at crypto and artificial intelligence.

On Aug. 6 local media reported that the Commission for Political and Legal Affairs of the Communist Party of China (CPC) Central Committee has issued the warning.

crypto and AI fraudsters after China announced aggressive measures to tackle fraud pic.twitter.com/08aqR1HDkn

— web3 guy (@memefloor) August 7, 2023

It specifically stated that it would be targeting new methods used by cyber criminals including blockchain, metaverse, cryptocurrencies, and artificial intelligence.

The announcement followed recent reports of Chinese nationals being subjected to telecoms fraud involving “virtual kidnapping.” Scammers have been impersonating public security personnel to dupe victims into divulging personal information which has led to extortion and ransoms.

Worldcoin touts user growth

Weekly global World ID verifications more than doubled in the seven days following the launch of retina-scanning digital ID platform Worldcoin, according to an Aug. 6 announcement from the firm.

It added that there was a threefold increase in weekly active World App users and more than ten times the weekly account creations in the seven days following the launch. Worldcoin claims to have over 2 million users.

“Last week's 2X growth in weekly World ID sign-ups demonstrates a sustained increase in global demand for World ID as a standalone product,” it said.

In the days following the Worldcoin launch, World App downloads hit record highs around the world. pic.twitter.com/K4iV6llPfR

— Tools For Humanity (@tfh_technology) August 3, 2023

However, on Aug. 4 Cointelegraph reported that Worldcoin’s Orb had serious a security vulnerability in operator onboarding according to CertiK.

Also making news

The Huobi crypto exchange has been reporting large outflows over the weekend amid ongoing concerns and rumors regarding its solvency. Additionally, Chinese authorities have been reportedly investigating its executives.

On Aug. 5 Elon Musk quashed rumors of a token launch for his recently rebranded micro-blogging platform X (formerly known as Twitter). The tech entrepreneur said there will “never” be a token launch despite unrelated altcoins being pumped and dumped by degens.

Magazine: Girl Gone Crypto thinks ‘BREAKING’ crypto news tweets are boring: Hall of Flame

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  • 14.10.25 08:46 robertalfred175

    CRYPTO SCAM RECOVERY SUCCESSFUL – A TESTIMONIAL OF LOST PASSWORD TO YOUR DIGITAL WALLET BACK. My name is Robert Alfred, Am from Australia. I’m sharing my experience in the hope that it helps others who have been victims of crypto scams. A few months ago, I fell victim to a fraudulent crypto investment scheme linked to a broker company. I had invested heavily during a time when Bitcoin prices were rising, thinking it was a good opportunity. Unfortunately, I was scammed out of $120,000 AUD and the broker denied me access to my digital wallet and assets. It was a devastating experience that caused many sleepless nights. Crypto scams are increasingly common and often involve fake trading platforms, phishing attacks, and misleading investment opportunities. In my desperation, a friend from the crypto community recommended Capital Crypto Recovery Service, known for helping victims recover lost or stolen funds. After doing some research and reading multiple positive reviews, I reached out to Capital Crypto Recovery. I provided all the necessary information—wallet addresses, transaction history, and communication logs. Their expert team responded immediately and began investigating. Using advanced blockchain tracking techniques, they were able to trace the stolen Dogecoin, identify the scammer’s wallet, and coordinate with relevant authorities to freeze the funds before they could be moved. Incredibly, within 24 hours, Capital Crypto Recovery successfully recovered the majority of my stolen crypto assets. I was beyond relieved and truly grateful. Their professionalism, transparency, and constant communication throughout the process gave me hope during a very difficult time. If you’ve been a victim of a crypto scam, I highly recommend them with full confidence contacting: 📧 Email: [email protected] 📱 Telegram: @Capitalcryptorecover Contact: [email protected] 📞 Call/Text: +1 (336) 390-6684 🌐 Website: https://recovercapital.wixsite.com/capital-crypto-rec-1

  • 15.10.25 18:07 crypto

    Cryptocurrency's digital realm presents many opportunities, but it also conceals complex frauds. It is quite painful to lose your cryptocurrency to scam. You can feel harassed and lost as a result. If you have been the victim of a cryptocurrency scam, this guide explains what to do ASAP. Following these procedures will help you avoid further issues or get your money back. Communication with Marie ([email protected] and WhatsApp: +1 7127594675) can make all the difference.

  • 15.10.25 21:52 harristhomas7376

    "In the crypto world, this is great news I want to share. Last year, I fell victim to a scam disguised as a safe investment option. I have invested in crypto trading platforms for about 10yrs thinking I was ensuring myself a retirement income, only to find that all my assets were either frozen, I believed my assets were secure — until I discovered that my BTC funds had been frozen and withdrawals were impossible. It was a devastating moment when I realized I had been scammed, and I thought my Bitcoin was gone forever, Everything changed when a close friend recommended the Capital Crypto Recover Service. Their professionalism, expertise, and dedication enabled me to recover my lost Bitcoin funds back — more than €560.000 DEM to my BTC wallet. What once felt impossible became a reality thanks to their support. If you have lost Bitcoin through scams, hacking, failed withdrawals, or similar challenges, don’t lose hope. I strongly recommend Capital Crypto Recover Service to anyone seeking a reliable and effective solution for recovering any wallet assets. They have a proven track record of successful reputation in recovering lost password assets for their clients and can help you navigate the process of recovering your funds. Don’t let scammers get away with your hard-earned money – contact Email: [email protected] Phone CALL/Text Number: +1 (336) 390-6684 Contact: [email protected] Website: https://recovercapital.wixsite.com/capital-crypto-rec-1

  • 15.10.25 21:52 harristhomas7376

    "In the crypto world, this is great news I want to share. Last year, I fell victim to a scam disguised as a safe investment option. I have invested in crypto trading platforms for about 10yrs thinking I was ensuring myself a retirement income, only to find that all my assets were either frozen, I believed my assets were secure — until I discovered that my BTC funds had been frozen and withdrawals were impossible. It was a devastating moment when I realized I had been scammed, and I thought my Bitcoin was gone forever, Everything changed when a close friend recommended the Capital Crypto Recover Service. Their professionalism, expertise, and dedication enabled me to recover my lost Bitcoin funds back — more than €560.000 DEM to my BTC wallet. What once felt impossible became a reality thanks to their support. If you have lost Bitcoin through scams, hacking, failed withdrawals, or similar challenges, don’t lose hope. I strongly recommend Capital Crypto Recover Service to anyone seeking a reliable and effective solution for recovering any wallet assets. They have a proven track record of successful reputation in recovering lost password assets for their clients and can help you navigate the process of recovering your funds. Don’t let scammers get away with your hard-earned money – contact Email: [email protected] Phone CALL/Text Number: +1 (336) 390-6684 Contact: [email protected] Website: https://recovercapital.wixsite.com/capital-crypto-rec-1

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