NEW YORK
New York Attorney General Letitia James secured a settlement worth up to $35 million and a permanent industry ban against Alex Mashinsky, the former CEO of Celsius Network, resolving allegations that he misled investors about the stability and safety of the crypto lending platform.
The agreement bars Mashinsky from any involvement in the digital asset industry—including offering, issuing, selling or promoting cryptocurrencies and digital assets.
Mashinsky led Celsius when the platform filed for Chapter 11 bankruptcy protection in July 2022 after freezing customer withdrawals, citing extreme market conditions. The New York AG's office accused him of making false statements about Celsius's financial health that induced investors to deposit billions of dollars despite his awareness of significant risks.
The $35 million settlement is designated for investor restitution, though distribution details and timing were not disclosed.
