New York Attorney General Letitia James has permanently barred Alex Mashinsky, the former chief executive of collapsed crypto lender Celsius, from the securities, commodities and crypto industries.
The settlement, announced on Friday, also carries payments of up to $35 million. James sued Mashinsky in 2023.
Up to $35 million, on conditions
The money is not automatic. Mashinsky would owe $25 million if he fails to forfeit a further $10 million in ill-gotten gains to the federal government under his plea agreement. He would owe another $10 million if he does not serve his full prison sentence.
That second condition is live. Mashinsky pleaded guilty to fraud and was sentenced in May 2025 to 12 years in federal prison, against the 20 years prosecutors had sought. He was also ordered to forfeit more than $48 million. He has since asked a court to vacate the sentence.
What New York alleged
The state’s suit alleged that Mashinsky defrauded hundreds of thousands of investors, including more than 26,000 in New York. The suit said he repeatedly claimed Celsius was safer than a bank, while customer assets were placed in high-risk strategies whose losses he concealed.
One New York resident mortgaged two properties to invest. A disabled veteran lost $36,000.
James said investors were left “penniless when his risky investments collapsed,” and added: “I won’t allow scammers to prey on unsuspecting New Yorkers.”
The ban joins others
New York’s bar adds to restrictions already in place. The CFTC has permanently banned Mashinsky from trading, and he agreed a $10 million settlement with the FTC that bars him from the crypto industry. He has also given up all claims to proceeds from the Celsius bankruptcy.
Celsius collapsed in 2022. Its creditors had received more than $3.4 billion through the bankruptcy as of August 2026, according to the attorney general’s office.
