Former Celsius CEO Alex Mashinsky permanently banned under New York settlement

New York Attorney General Letitia James announced a settlement resolving a 2023 civil fraud lawsuit against former Celsius Network Chief Executive Officer Alex Mashinsky. Cointelegraph, CoinDesk, The Block, and Decrypt all reported that the agreement permanently bars Mashinsky from the cryptocurrency, securities, and commodities industries. The settlement also requires Mashinsky to pay up to 35 million dollars in conditional financial remedies. [1][2][3][4][5][6][7][8][9]

The terms of the financial agreement feature specific conditions tied to Mashinsky's federal case. Cointelegraph and Decrypt reported that Mashinsky must pay New York 25 million dollars if he fails to forfeit 10 million dollars in ill-gotten gains under his federal plea deal. CoinDesk and Decrypt both noted that he faces an additional 10 million dollar penalty if he fails to serve his full federal prison sentence or is released early. [1][2][4]

The 2023 lawsuit accused Mashinsky of misleading hundreds of thousands of investors about the safety of their deposits prior to the collapse of Celsius in 2022. CoinDesk reported that the affected group included more than 26,000 residents of New York. Alexander Mashinsky is a cofounder and former executive of the bankrupt cryptocurrency lending platform. [1][2][12]

Mashinsky is currently serving a 12-year federal prison sentence after pleading guilty to criminal security fraud charges, according to CoinDesk. [2]