New York Permanently Bars Celsius Founder Alex Mashinsky

New York Attorney General Letitia James announced a settlement permanently barring former Celsius CEO Alex Mashinsky from the cryptocurrency, securities and commodities industries, with up to $35 million in payments to the state contingent on federal forfeiture and prison-related conditions. The agreement resolves a civil fraud lawsuit filed by James’ office in 2023. The lawsuit alleged Mashinsky misled investors about the safety of Celsius and its investment practices before the cryptocurrency lending company collapsed. The settlement resolves those civil allegations but does not independently establish them. Under the terms described by the attorney general’s office, Mashinsky faces a $25 million payment to New York if he does not meet a federal forfeiture condition requiring $10 million. He could owe an additional $10 million to the state if he does not serve his full federal prison sentence. The total of up to $35 million is conditional; the agreement does not say that the full amount has already been paid. Mashinsky is serving a 12-year federal sentence after pleading guilty in December 2024 to securities and commodities fraud.