New York’s attorney general has sued Alex Mashinsky, the former CEO of Celsius Network, for defrauding hundreds of thousands of investors by making false statements about the condition of the company to encourage money to keep coming in.

Attorney General Letitia James said the state intends to ban Mashinsky from doing business there, in addition to seeking damages and restitution for harmed investors, according to a Thursday statement.

“As the former CEO of Celsius, Alex Mashinsky promised to lead investors to financial freedom but led them down a path of financial ruin,” James said in the statement.

(By Jesse Hamilton)