NY AG Secures $35M and Lifetime Crypto Ban from Celsius Founder Alex Mashinsky

lifetime crypto ban — Former Celsius CEO Alex Mashinsky has agreed to a settlement with New York Attorney General Letitia James, which includes a payment of up to $35 million and a permanent ban from the securities, commodities, and cryptocurrency industries.

The settlement, announced on October 9, 2026, resolves a civil case brought by the state of New York. The AG’s office had accused Mashinsky of misleading hundreds of thousands of investors about the safety of deposits with the crypto lending platform.

Mashinsky is already serving a 12-year federal prison sentence for securities and commodities fraud related to Celsius’s collapse. The failed lender froze customer withdrawals and filed for bankruptcy in July 2022.

Through the subsequent bankruptcy proceedings, Celsius customers and creditors have received more than $3.4 billion in distributions. The settlement with the New York AG represents a separate legal resolution for Mashinsky’s alleged misconduct.