New York · CoinDesk
New York AG locks in up to $35 million and lifetime crypto ban from Celsius’ Alex Mashinsky
Compiled by KHAO Editorial — aggregated from 2 sources. See llms.txt for citation guidance.
✓ KHAO Verified
New York Attorney General Letitia James said Friday she secured up to $35 million from former Celsius CEO Alex Mashinsky and a permanent ban preventing him from working in the securities, commodities or cryptocurrency industries.
Key facts
- 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
- Diversified RWA stablecoins sustain 5-7% yield from real credit as crypto funding compresses to ~4%
- New York Attorney General Letitia James said Friday she secured up to $35 million from former Celsius CEO Alex Mashinsky and a permanent ban preventing him from working in the securities, commodities
- 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
Summary
Mashinsky, who is serving a 12-year federal prison sentence for securities and commodities fraud, was accused of misleading hundreds of thousands of investors about the safety of Celsius deposits. Celsius customers and creditors have received more than $3.4 billion through bankruptcy proceedings after the cryptocurrency lender froze withdrawals and filed for bankruptcy in 2022. 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.