New York regulators are securing up to $35 million in penalties along with a permanent ban from key financial sectors against a former cryptocurrency executive for defrauding investors.

New York Attorney General Letitia James announced the settlement on October 9, 2026, with Alex Mashinsky, co-founder and former CEO of Celsius Network LLC.

Mashinsky defrauded hundreds of thousands of investors, including more than 26,000 in New York, by misleading them about the platform’s safety and low-risk strategies while concealing losses from risky investments.

Under the deal, Mashinsky will be permanently barred from the securities, commodities, and cryptocurrency industries.

He is serving a 12-year federal prison sentence and was ordered to forfeit more than $48 million federally.

Investors and creditors have already received over $3.4 billion through the company’s bankruptcy proceedings as of August 2026.

The payments to New York are conditional: Mashinsky must pay $25 million if he fails to forfeit a further $10 million in ill-gotten gains to the federal government under his plea agreement, and $10 million if he does not serve his full prison sentence.

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