New York · Cointelegraph
New York permanently bars Celsius founder Mashinsky in $35 million fraud settlement
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◎ Multiple-sources
The agreement resolves a 2023 civil fraud lawsuit against the Celsius founder and permanently bars him from the cryptocurrency, securities and commodities industries.
Key facts
- Under the settlement, Mashinsky must pay New York $25 million if he fails to forfeit an additional $10 million in ill-gotten gains to the federal government beyond assets already forfeited
- An April settlement with the Federal Trade Commission had already barred him from working in crypto and finance and required a $10 million payment, along with a largely suspended $4.72 billion
- Former Celsius CEO Alex Mashinsky has been permanently barred from the cryptocurrency, securities and commodities industries under a settlement with New York Attorney General Letitia James
- Mashinsky is serving a 12-year federal prison sentence for fraud and was separately ordered to forfeit more than $48 million
Summary
Former Celsius CEO Alex Mashinsky has been permanently barred from the cryptocurrency, securities and commodities industries under a settlement with New York Attorney General Letitia James that includes up to $35 million in conditional payments. The New York agreement, announced Friday, settles a 2023 civil lawsuit accusing Mashinsky of misleading hundreds of thousands of investors about the safety of Celsius before its collapse in 2022. Under the settlement, Mashinsky must pay New York $25 million if he fails to forfeit an additional $10 million in ill-gotten gains to the federal government beyond assets already forfeited, and another $10 million if he does not serve his full prison sentence. Mashinsky is serving a 12-year federal prison sentence for fraud and was separately ordered to forfeit more than $48 million.