New York AG secures up to $35 million and lifetime crypto ban from Celsius’ Alex Mashinsky
New York Attorney General Letitia James has secured a settlement with former Celsius CEO Alex Mashinsky, including a lifetime ban from the crypto industry and potential financial penalties of up to $35 million. Mashinsky, who is currently serving a 12-year prison sentence for fraud, was found to have misled investors regarding the safety of their deposits.
Why it matters
This settlement represents a significant regulatory victory in holding executives accountable for the collapse of major crypto platforms and the subsequent loss of billions in customer assets.
James sued Mashinsky in 2023 according to a press release, saying he misled hundreds of thousands of investors, including more than 26,000 New Yorkers, about the safety of their Celsius deposits.
Mashinsky is serving a 12-year federal prison sentence after pleading guilty to securities and commodities fraud. He was also permanently barred from commodities activity by the Commodity Futures Trading Commission (CFTC) in June.
Under the New York settlement, Mashinsky must pay the state $25 million if he does not forfeit $10 million in ill-gotten gains to the federal government. He must pay a further $10 million if he fails to serve his full prison sentence, according to the attorney general’s office .
Celsius froze customer withdrawals in June 2022 and filed for bankruptcy a month later.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in