New York Attorney General Letitia James said the state has reached a settlement with former Celsius CEO Alex Mashinsky over allegations that he defrauded investors. The agreement provides for up to $35 million in conditional restitution and would permanently bar Mashinsky from the securities, commodities, and cryptocurrency industries. The announcement adds to earlier industry bans imposed by the U.S. Federal Trade Commission and the Commodity Futures Trading Commission. Mashinsky is currently serving a 12-year prison sentence. Separately, Celsius creditors have already received more than $3.4 billion in distributions through the company’s bankruptcy process. The settlement marks another regulatory action tied to the collapse of the crypto lender and comes as creditor repayments continue to move through court-supervised proceedings.
New York Attorney General Letitia James said the state has reached a settlement with former Celsius chief executive Alex Mashinsky over allegations that he defrauded investors.
Settlement includes conditional restitution and a permanent industry ban
According to the announcement, the settlement provides for up to $35 million in conditional restitution. It also requires Mashinsky to permanently leave the securities, commodities, and cryptocurrency industries.
Federal agencies had already barred Mashinsky from the industry
Before this settlement, the U.S. Federal Trade Commission, or FTC, and the Commodity Futures Trading Commission, or CFTC, had already imposed industry bans on Mashinsky.
Mashinsky is serving a 12-year sentence
Mashinsky is currently in prison and serving a 12-year sentence. Separately, Celsius creditors have received more than $3.4 billion through the company’s bankruptcy proceedings.
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