Alex Mashinsky hit with lifetime industry ban in New York settlement

New York Attorney General Letitia James secured the agreement to resolve a 2023 civil lawsuit regarding Mashinsky’s promotion of Celsius as a secure bank alternative. The state’s investigation concluded that Mashinsky misled hundreds of thousands of investors by concealing massive losses and financing risky strategies with customer assets. While he publicly touted the platform’s safety, the company failed to register as a securities dealer, violating state law.

Financial penalties under this settlement are strictly conditional. Mashinsky owes New York $25 million if he fails to surrender $10 million in assets to federal authorities beyond what is already mandated by his criminal case. An additional $10 million payment to the state is triggered if he does not serve his full 12-year prison term for fraud. These measures follow a broader pattern of regulatory crackdowns, including a $4.72 billion judgment from the Federal Trade Commission and permanent trading bars from the Commodity Futures Trading Commission. While bankruptcy proceedings have returned over $3.4 billion to creditors as of August 2026, Mashinsky continues to challenge his criminal conviction in federal court.