Celsius former CEO Alex Mashinsky permanently banned from securities and crypto industry

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In a major regulatory development affecting liquidity and crypto markets, New York Attorney General Letitia James announced on October 9, 2026, a settlement with Celsius co-founder Alex Mashinsky. Mashinsky has been permanently barred from the securities and crypto industries and is subject to a $35 million fine. He must surrender an additional $10 million in ill-gotten gains or pay $25 million to the State of New York. The case further complicates the ongoing debate over whether crypto assets are securities or commodities. Mashinsky, currently serving a 12-year federal sentence, is also ordered to forfeit over $48 million. As of August 2026, Celsius’ bankruptcy proceedings have distributed $3.4 billion to creditors.

ChainThink reports that on October 9, New York State Attorney General Letitia James announced a settlement with Celsius co-founder and former CEO Alex Mashinsky.

Mashinsky will be permanently barred from engaging in the securities, commodities, and cryptocurrency industries, with a maximum fine of $35 million.

Under the settlement agreement, Mashinsky must pay an additional $10 million in illicit gains to the federal government, beyond the seized assets, as part of his federal guilty plea; if unpaid, he must pay $25 million to the State of New York.

If the full sentence is not served, an additional $10 million must be paid to the State of New York.

In 2023, the New York State Attorney General’s Office sued Mashinsky, alleging that he misled investors regarding the safety of Celsius and defrauded hundreds of thousands of investors, including over 26,000 residents of New York State.

Mashinsky is currently serving a 12-year sentence in a federal criminal case and has been ordered to forfeit over $480 million. As of August 2026, the Celsius bankruptcy proceeding has distributed over $3.4 billion to creditors.

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