Alex Mashinsky Permanently Banned from Crypto Following Fraud Settlement
- Former Celsius CEO Alex Mashinsky is permanently barred from the cryptocurrency, securities, and commodities industries.
- The settlement with New York Attorney General Letitia James includes conditional payments totaling up to $35 million.
- Mashinsky must pay $25 million if he fails to forfeit an additional $10 million in ill-gotten gains.
- He is currently serving a 12-year federal prison sentence for fraud related to misleading investors about Celsius.
- Celsius froze customer withdrawals in June 2022 and filed for bankruptcy the following month, revealing over $1 billion in liabilities.
The settlement resolves allegations that Mashinsky misled investors about the safety of Celsius, which promised high yields but concealed significant risks leading to its collapse. This ban follows earlier actions by federal regulators, including a permanent trading ban by the Commodity Futures Trading Commission (CFTC).
As part of his legal troubles, Mashinsky faces substantial financial penalties and must navigate ongoing legal challenges while serving his prison sentence.(Source)
