New York Attorney General Letitia James has permanently banned former Celsius Network CEO Alex Mashinsky from the securities, commodities, and cryptocurrency industries. The settlement includes a payment of up to $35 million from Mashinsky to the state of New York.
The payment structure is conditional. Mashinsky must pay $25 million if he fails to forfeit $10 million in gains to the federal government under his plea agreement. An additional $10 million is due if he does not complete his full prison sentence.
In May 2025, Mashinsky was sentenced to 12 years in federal prison after pleading guilty to fraud. The court also ordered him to forfeit more than $48 million. Previously, the CFTC banned him from trading, and he reached a $10 million settlement with the FTC.
The legal action follows a 2023 lawsuit alleging that Mashinsky defrauded hundreds of thousands of investors, including over 26,000 in New York. The investigation revealed that Celsius used high-risk strategies while misleading customers about the safety of their assets.
As of August 2026, Celsius creditors have received more than $3.4 billion through the bankruptcy process. Mashinsky has forfeited all claims to these bankruptcy proceeds.
