Key Takeaways
- • New York Attorney General Letitia James reached a settlement with former Celsius Network CEO Alex Mashinsky that bars him from the crypto industry and requires him to pay up to $35 million, according to multiple reports.
- • Under the settlement, Mashinsky must pay $25 million to New York if he fails to forfeit $10 million in ill-gotten gains to the federal government, per one report.
- • Mashinsky is permanently barred from the crypto industry in New York, and a separate FTC settlement reportedly includes a lifetime ban from asset-related products and a $10 million penalty.
- • Mashinsky is already serving a 12-year prison sentence after pleading guilty in December 2024 to commodities fraud and a scheme to manipulate markets.
- • The New York action follows the attorney general's 2023 lawsuit alleging Mashinsky misled investors about Celsius's safety and concealed its deteriorating financial condition.
Summary
New York has settled its civil case against Alex Mashinsky, co-founder and former CEO of the bankrupt Celsius Network, resulting in a lifetime ban on his participation in the crypto industry. Headlines across publisher and aggregator coverage report that Mashinsky will pay up to $35 million under the agreement. One report states that he must pay $25 million to New York if he fails to forfeit $10 million in ill-gotten gains to the federal government. The full terms of the settlement could not be independently verified from the original article, which was not retrieved.
The underlying lawsuit, filed by Attorney General Letitia James, alleged that Mashinsky defrauded hundreds of thousands of investors, including more than 26,000 New Yorkers, of billions of dollars in cryptocurrency. According to the Attorney General's office, Mashinsky repeatedly made false statements about Celsius's safety and number of users, concealed the platform's deteriorating financial condition as it lost hundreds of millions of dollars in risky investments, and failed to register as a securities and commodities salesperson and dealer. The original complaint sought to bar him from doing business in New York and to obtain damages, restitution and disgorgement.
A separate reported settlement with the Federal Trade Commission reportedly includes a lifetime ban from asset-related products and a $10 million penalty. Mashinsky is currently serving a 12-year prison sentence after pleading guilty in December 2024 to commodities fraud and a scheme to manipulate markets. Earlier federal charges by the Securities and Exchange Commission and a criminal indictment were filed in July 2023. Mashinsky has been described in coverage as the former public face of Celsius, a cryptocurrency lending platform that promised high yields on deposited digital assets.
The underlying lawsuit, filed by Attorney General Letitia James, alleged that Mashinsky defrauded hundreds of thousands of investors, including more than 26,000 New Yorkers, of billions of dollars in cryptocurrency. According to the Attorney General's office, Mashinsky repeatedly made false statements about Celsius's safety and number of users, concealed the platform's deteriorating financial condition as it lost hundreds of millions of dollars in risky investments, and failed to register as a securities and commodities salesperson and dealer. The original complaint sought to bar him from doing business in New York and to obtain damages, restitution and disgorgement.
A separate reported settlement with the Federal Trade Commission reportedly includes a lifetime ban from asset-related products and a $10 million penalty. Mashinsky is currently serving a 12-year prison sentence after pleading guilty in December 2024 to commodities fraud and a scheme to manipulate markets. Earlier federal charges by the Securities and Exchange Commission and a criminal indictment were filed in July 2023. Mashinsky has been described in coverage as the former public face of Celsius, a cryptocurrency lending platform that promised high yields on deposited digital assets.
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