New York secures up to $35 million and lifetime industry ban in Alex Mashinsky settlement
Former Celsius CEO Alex Mashinsky has agreed to up to $35 million in conditional payments and a permanent ban across the crypto, securities, and commodities industries to settle a civil fraud action brought by New York Attorney General Letitia James.
Former Celsius CEO Alex Mashinsky has agreed to pay up to $35 million in conditional payments and accept a permanent ban from the securities, commodities, and crypto industries, New York Attorney General Letitia James announced on Friday. As reported by The Block and CoinDesk, the settlement resolves a state civil case accusing Mashinsky of misleading customers about the safety of the failed cryptocurrency lender and defrauding investors, with claims specifically focusing on Celsius's Earn program and CEL token.[1][2][3][4]
The state-level prohibition supplements previous regulatory bans Mashinsky received from the Federal Trade Commission and the Commodity Futures Trading Commission. Mashinsky is already serving a 12-year federal prison sentence for fraud. Separately, Celsius creditors have recovered more than $3.4 billion through the company's bankruptcy proceedings.[1][4]
Key facts
- New York Attorney General Letitia James secured up to $35 million in conditional payments from former Celsius CEO Alex Mashinsky.
- Mashinsky agreed to a permanent ban from the securities, commodities, and crypto industries.
- The settlement resolves allegations that Mashinsky misled customers about Celsius's safety and committed fraud tied to the Earn program and the CEL token.
- The New York ban adds to earlier bans issued against Mashinsky by the FTC and CFTC.
- Mashinsky is currently serving a 12-year federal prison sentence for fraud.
- Celsius creditors have received over $3.4 billion through the lender's bankruptcy proceedings.
Sources · 4 sources
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CoindeskArticle ·
New York AG secures up to $35 million and lifetime crypto ban from Celsius’ Alex Mashinsky 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.
Open source - CB
Crypto BriefingArticle ·
New York AG Letitia James secures up to $35M from former Celsius CEO Alex Mashinsky New York AG Letitia James secured up to $35 million and a trading ban from former Celsius CEO Alex Mashinsky over Earn and CEL fraud claims. The post New York AG Letitia James secures up to $35M from former Celsius CEO Alex Mashinsky appeared first on Crypto Briefing .
Open source - TB
The BlockArticle ·
New York AG secures up to $35 million from former Celsius CEO Alex Mashinsky NY AG Letitia James secured up to $35M from ex-Celsius CEO Alex Mashinsky and a permanent ban from the securities and crypto industries.
Open source - TB
The Block@TheBlockCoPost on X ·
THE BLOCK: New York AG Letitia James secured up to $35 million in conditional payments from former Celsius CEO Alex Mashinsky and a permanent securities, commodities and crypto industry ban over allegations that he defrauded investors, her office announced Friday, adding to earlier FTC and CFTC bans. Mashinsky is serving a 12-year federal prison sentence, while Celsius creditors have received more than $3.4 billion through the company's bankruptcy proceedings.
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