Celsius' Alex Mashinsky hit with $35M penalty and permanent ban in NY legal settlement
Summary
New York Attorney General Letitia James secured a settlement with former Celsius CEO Alex Mashinsky that bars him permanently from the securities, commodities and cryptocurrency industries. He must pay $25 million unless he forfeits $10 million in ill-gotten gains to the federal government, and another $10 million if he does not serve his full prison sentence. Mashinsky is serving 12 years after pleading guilty to securities and commodities fraud. James’s 2023 lawsuit accused him of misleading Celsius customers about the safety of their deposits. Celsius froze withdrawals in June 2022 and filed for bankruptcy; creditors and customers have received more than $3.4 billion through the bankruptcy process.
