New York AG secures $35 million and lifetime ban from Celsius’ Alex Mashinsky
- New York Attorney General Letitia James secured a settlement of up to $35 million from former Celsius CEO Alex Mashinsky.
- Mashinsky misled over 26,000 New Yorkers regarding the safety of their deposits, according to the AG’s lawsuit.
- He is currently serving a 12-year prison sentence after pleading guilty to securities and commodities fraud.
- Under the settlement, Mashinsky must pay $25 million unless he forfeits $10 million in ill-gotten gains to the federal government.
- If he fails to complete his prison term, an additional payment of $10 million is required.
This case highlights significant legal actions against fraudulent activities in the cryptocurrency sector, particularly following Celsius‘s bankruptcy filing after freezing customer withdrawals in June.
The settlement could result in Mashinsky paying up to $35 million for defrauding investors while being permanently banned from the cryptocurrency industry. (Source)
