New York Attorney General Letitia James reaches a settlement with former Celsius CEO Alex Mashinsky, resolving a civil case tied to allegations that he misled customers about the failed crypto lender’s safety. The deal includes a commitment for Mashinsky to forfeit up to $35 million, structured so he owes $25 million if he does not forfeit an additional $10 million, and another $10 million if he does not serve his full sentence. Mashinsky is already serving a prison term.
The outlets describe the settlement as including a permanent ban preventing Mashinsky from working in the securities and crypto industries. CoinDesk and The Block characterize it as the conclusion of New York’s civil action, while Decrypt emphasizes the maximum forfeiture amount and how additional penalties depend on whether he serves his full sentence. The reporting is consistent that the civil claims focus on alleged misstatements to Celsius customers amid the company’s collapse.
All sources indicate the settlement is reached after Mashinsky was sentenced to about 12 years in a separate criminal matter for fraud connected to his role at Celsius.
