New York Attorney General Letitia James said Friday she secured up to $35 million from former Celsius CEO Alex Mashinsky and a permanent ban preventing him from working in the securities, commodities or cryptocurrency industries.
James sued Mashinsky in 2023 according to a press release, saying he misled hundreds of thousands of investors, including more than 26,000 New Yorkers, about the safety of their Celsius deposits.
Mashinsky is serving a 12-year federal prison sentence after pleading guilty to securities and commodities fraud. He was also permanently barred from commodities activity by the Commodity Futures Trading Commission (CFTC) in June.
Under the New York settlement, Mashinsky must pay the state $25 million if he does not forfeit $10 million in ill-gotten gains to the federal government. He must pay a further $10 million if he fails to serve his full prison sentence, according to the attorney general’s office.
Celsius froze customer withdrawals in June 2022 and filed for bankruptcy a month later.