New York permanently bans Celsius founder from crypto industry
- New York Attorney General Letitia James secured a settlement permanently barring former Celsius CEO Alex Mashinsky from the cryptocurrency, securities and commodities industries.
- The settlement includes up to US$35 million in conditional payments linked to federal forfeiture and prison-sentence requirements.
- The agreement follows allegations that Mashinsky misled Celsius customers about risks and the platform's financial position.
New York Attorney General Letitia James has secured a settlement permanently banning former Celsius chief executive Alex Mashinsky from the cryptocurrency, securities and commodities industries.
The agreement follows a civil case alleging Mashinsky misled customers about Celsius's financial health and the risks of depositing assets.
“I will not allow scammers to use cryptocurrencies to prey on unsuspecting New Yorkers. We took action to hold Mashinsky accountable, and now we are barring him from the securities industry so he cannot take advantage of investors again,” New York Attorney General Letitia James said in a statement.
The settlement provides for up to US$35 million in conditional payments tied to federal forfeiture and Mashinsky's prison sentence.
Mashinsky must forfeit an additional US$10 million in ill-gotten gains to the federal government to avoid a US$25 million payment to New York.
A further US$10 million payment to New York applies if Mashinsky does not serve his full prison sentence.
The settlement follows the collapse of Celsius, whose customers lost access to funds when the cryptocurrency lending platform filed for bankruptcy in July 2022.
The settlement also restricts Mashinsky from returning to the financial and digital asset sectors covered by the agreement.
