Former Celsius CEO Alex Mashinsky has reached a settlement with the New York Attorney General to resolve a 2023 civil fraud lawsuit. Under the terms, Mashinsky is permanently barred from participating in the cryptocurrency, securities, and commodities industries.
The settlement includes conditional payments of up to $35 million. Mashinsky must pay $25 million if he fails to forfeit an additional $10 million in gains to the federal government, and another $10 million if he does not complete his full prison sentence.
Mashinsky is currently serving a 12-year federal prison sentence following a guilty plea in December 2024 for securities and commodities fraud. He was also ordered to forfeit more than $48 million in a separate federal proceeding.
The 2023 lawsuit alleged that Mashinsky misled investors about the safety of Celsius, which had attracted approximately $20 billion in digital assets by early 2022. The company filed for bankruptcy in July 2022 with a shortfall exceeding $1 billion.
As of August 2026, creditors have received over $3.4 billion through bankruptcy proceedings. Mashinsky has also faced previous settlements with the CFTC, FTC, and SEC regarding his activities at the firm.
