REGULATION | New York Permanently Bans Celsius Founder From Crypto Industry

New York Attorney General, Letitia James, has secured a permanent ban on former Celsius Network chief executive, Alex Mashinsky, from the cryptocurrency, securities, and commodities industries under a settlement that could require him to pay up to $35 million.

The agreement, announced on October 9 2026, resolves a 2023 civil lawsuit accusing Mashinsky of misleading hundreds of thousands of investors about Celsius’ financial condition, investment risks, and the safety of customer deposits. The lawsuit alleged that he promoted the platform as a secure alternative to traditional banks while concealing losses from risky investments.

Under the settlement, Mashinsky must pay New York $25 million if he fails to forfeit an additional $10 million in ill-gotten gains to the federal government beyond assets already forfeited. He must also pay another $10 million if he does not serve his full prison sentence.

Mashinsky is currently serving a 12-year federal prison sentence after pleading guilty in December 2024 to securities and commodities fraud. He was separately ordered to forfeit more than $48 million.

The settlement adds to enforcement actions against the former executive. In June 2026, the Commodity Futures Trading Commission permanently barred him from trading in markets under its jurisdiction and from registering with the agency. A separate Federal Trade Commission settlement also barred him from the cryptocurrency and financial services industries.