New York Attorney General Letitia James announced a settlement with former Celsius Network co-founder and CEO Alex Mashinsky, permanently barring him from the securities, commodities and cryptocurrency industries. The settlement provides for up to $35 million in payments to New York, subject to conditions: Mashinsky must pay $25 million if he fails to forfeit $10 million to the federal government, and $10 million if he does not serve his full prison sentence.

The Attorney General’s Office said it sued Mashinsky in 2023, alleging that he misled investors about Celsius’s safety and encouraged them to deposit digital assets. The office said he is serving a 12-year federal prison sentence in a parallel criminal case. It also reported that more than $3.4 billion had been distributed to Celsius creditors in bankruptcy as of August 2026.

Why it matters

  • The settlement imposes a permanent industry ban alongside conditional financial obligations.
  • The civil resolution is separate from Mashinsky’s federal criminal case and Celsius’s bankruptcy proceedings.