Celsius Founder Alex Mashinsky Banned From Crypto and Securities Markets
Translated & summarized from NEWSru Israel by baba
Celsius founder Alex Mashinsky has been permanently banned from the cryptocurrency and securities industries in New York as part of a settlement with the state's Attorney General. Mashinsky, who is already serving a 12-year sentence for federal fraud charges, faces potential fines of up to $35 million. The settlement aims to prevent him from further defrauding investors after Celsius collapsed in 2022. The lawsuit was filed in 2023.
The story in 6 lines · by baba
- Alex Mashinsky, founder of Celsius, is permanently banned from New York's crypto and securities markets.
- The settlement includes potential fines of up to $35 million for Mashinsky.
- Mashinsky is currently serving a 12-year prison sentence for federal fraud charges.
- Over $48 million in assets have already been seized from Mashinsky in the federal case.
- Celsius went bankrupt in 2022, freezing customer assets.
- The New York Attorney General's office filed the lawsuit against Mashinsky in 2023.
New York Attorney General Letitia James announced a settlement with Alex Mashinsky, the founder and former CEO of the cryptocurrency company Celsius. Mashinsky, an Israeli-American entrepreneur, was accused of multi-billion dollar fraud against investors. Under the agreement, Mashinsky is permanently barred from participating in the securities and crypto-asset industries in New York. The settlement also includes potential fines of up to $35 million, which will be imposed if Mashinsky fails to fully serve his prison sentence or meet federal asset forfeiture requirements. Mashinsky is currently serving a 12-year sentence for a separate federal criminal case, in which over $48 million in assets have already been seized from him. Celsius filed for bankruptcy in 2022 after freezing customer withdrawals, leaving hundreds of thousands of clients unable to access their funds. James stated that her office secured Mashinsky's industry ban "so he can no longer prey on investors." The lawsuit against him was filed by the New York Attorney General's office in 2023.
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