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New York AG Secures Up to $35M and Industry Ban From Ex-Celsius CEO Alex Mashinsky

Mashinsky owes New York $25 million if he fails to forfeit another $10 million, and $10 million more if he doesn't serve his full sentence.

By RWA Crypto Watch Editorial Team · Published Oct 9, 2026, 2:16 PM UTC · Updated 2026-10-09 · Risk level: medium
Sources checked: Oct 9, 2026, 5:01 PM UTC

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What happened

Mashinsky owes New York $25 million if he fails to forfeit another $10 million, and $10 million more if he doesn’t serve his full sentence.

Reported details

  • Alex Mashinsky, already serving 12 years for fraud, settled New York’s civil case over claims he misled Celsius customers about the failed crypto lender’s safety.
  • NY AG Letitia James secured up to $35M from ex-Celsius CEO Alex Mashinsky and a permanent ban from the securities and crypto industries.
  • TL;DR New York’s attorney general reached a settlement with Alex Mashinsky involving payments of up to $35 million and a permanent ban from the cryptocurrency, securities, and commodities industries. Mashinsky is serving a 12-year federal prison sentence for fraud. He was accused of misleading hundreds of thousands of investors about the safety of Celsius. Celsius …
  • The New York settlement ties the money to federal forfeiture and prison-sentence conditions, adding to existing FTC and CFTC restrictions.

Why this matters

New York AG is a factual update rather than a structural change to tokenized assets. Its value to a desk is the sourced detail and the timing, so read it next to the linked reporting and treat any figure the sources do not state as unknown.

Evidence boundary

The scope is limited to what the linked reports state, and where two of them diverge both positions are recorded without either being picked in advance.

What to verify

Corroborate New York AG with one independent dated source, and treat any figure the linked reports do not state as unknown rather than inferred.

Sources and editorial check time

This information is educational and is not financial, legal, or tax advice.

Sources