New York · Decrypt
New York AG Picks up Up to $35 million and Industry Ban From Ex-Celsius CEO Alex Mashinsky
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New York Attorney General Letitia James has permanently barred former Celsius Network CEO Alex Mashinsky from the securities, commodities and crypto industries, and secured up to $35 million from him, her office announced Friday.
Key facts
- The payments are conditional, with Mashinsky required to pay New York $25 million if he fails to forfeit a further $10 million in ill-gotten gains to the federal government under his plea agreement
- New York Attorney General Letitia James has permanently barred former Celsius Network CEO Alex Mashinsky from the securities, commodities and crypto industries, and secured up to $35 million
- James sued Mashinsky in 2023, accusing him of defrauding hundreds of thousands of investors, including more than 26,000 in New York, by misleading them about the safety of the crypto lending — He was arrested in July 2023 and released on $40 million bail ahead of trial
Summary
The settlement secures up to $35 million, payable only if Mashinsky fails to forfeit $10 million more or does not serve his full prison sentence. Mashinsky is serving 12 years in federal prison after pleading guilty to fraud, and has asked a court to vacate the sentence. The payments are conditional, with Mashinsky required to pay New York $25 million if he fails to forfeit a further $10 million in ill-gotten gains to the federal government under his plea agreement, and $10 million if he does not serve his full prison sentence.