New York bans ex-Celsius CEO Alex Mashinsky and secures up to $35 million

What happened

New York Attorney General Letitia James has permanently barred Alex Mashinsky, the former CEO of Celsius Network, from the securities, commodities and crypto industries. Her office announced the settlement Friday and said it secures up to $35 million from him.

The payments are conditional. Mashinsky owes New York $25 million if he does not forfeit a further $10 million in ill-gotten gains to the federal government, and another $10 million if he does not serve his full prison sentence.

James sued Mashinsky in January 2023, alleging he misled hundreds of thousands of investors, more than 26,000 of them in New York, about Celsius' safety. Her office said he called the platform safer than a bank, put customer assets into high-risk strategies, and failed to register as a salesperson and dealer under New York law.

The office cited individual losses. One New York resident mortgaged two properties to invest with Celsius, and a disabled veteran lost $36,000. James said Mashinsky left New Yorkers penniless when his risky investments collapsed.

Why it matters

The state ban sits alongside federal and other regulatory penalties. Mashinsky pleaded guilty on Dec. 3, 2024, to commodities fraud and securities fraud charges, according to the CFTC, and was sentenced on May 8, 2025, with an order to forfeit $48,393,446.

He is serving a 12-year federal prison sentence after pleading guilty to fraud charges, while prosecutors had sought 20 years.

Other regulators also acted. The CFTC has permanently banned him from trading, and a $10 million settlement with the FTC bars him from the crypto industry.

Mashinsky has asked a court to vacate his 12-year sentence, so the prison term is not final.

The attorney general's office also encouraged crypto industry workers who see misconduct to file whistleblower complaints, which can be made anonymously.

What the data shows

• Up to $35 million is the maximum New York secures from Mashinsky under the settlement.
• $25 million and $10 million are the conditional payments tied to forfeiture and prison time.
• $48,393,446 is the forfeiture ordered in the federal case.
• More than $3.4 billion had been distributed to Celsius creditors as of August 2026.
• More than 26,000 New York investors were among those James said were misled.

Background

• Celsius collapsed in 2022, and James sued Mashinsky in 2023.
• He was arrested in July 2023 and released on $40 million bail ahead of trial.
• Mashinsky forfeited all of his claims to the bankruptcy proceeds.

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