New York Secures Up to $35 Million Penalty, Lifetime Ban for Mashinsky

New York Attorney General Letitia James announced a settlement with former Celsius Network LLC CEO Alex Mashinsky that could require up to $35 million in payments and permanently bar him from the securities, commodities and cryptocurrency industries.

Mashinsky must pay $25 million if he fails to forfeit an additional $10 million in ill-gotten gains to the federal government under his plea agreement. He faces another $10 million payment if he does not complete his 12-year federal prison sentence.

James accused Mashinsky of misleading hundreds of thousands of investors about Celsius’ safety and low-risk strategies while concealing losses from risky investments. More than 26,000 New York investors were affected, the attorney general’s office said.

Mashinsky is serving a 12-year federal sentence and was ordered to forfeit more than $48 million. Celsius investors and creditors have received more than $3.4 billion through the company’s bankruptcy proceedings as of August 2026.