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New York AG secures up to $35 million and lifetime ban for Mashinsky
The settlement includes a payment structure starting at $25 million, with an additional $10 million if Mashinsky fails to forfeit more money, plus an extra $10 million tied to whether he serves his full sentence, according to reporting.
New York’s attorney general reached a settlement with Alex Mashinsky, the former CEO of Celsius, over claims that he misled customers about the crypto lender’s safety, CoinDesk reports. Mashinsky, who is already serving a 12-year prison sentence for fraud, will face a permanent ban from the securities and crypto industries as part of the deal.
The settlement provides for up to $35 million, with reporting saying Mashinsky owes $25 million to New York and an additional $10 million if he fails to forfeit another $10 million. Decrypt adds that another $10 million can be required if Mashinsky does not serve his full sentence.
The Block also reported that NY AG Letitia James secured up to $35 million from Mashinsky, alongside the lifetime industry ban. The agreement follows the earlier civil case settlement tied to Celsius customer claims, per the outlets.