12 October 2026
Celsius Co-Founder Alex Mashinsky Permanently Banned from Crypto Following New York Settlement
In a significant development for the cryptocurrency industry, Alex Mashinsky, the co-founder and former CEO of Celsius, has been issued a lifetime ban from participating in crypto and securities businesses. This ruling comes as part of a settlement announced by New York Attorney General Letitia James on October 9, 2026.
The ban stems from allegations that Mashinsky misled investors about the safety of their deposits, resulting in substantial financial losses. The settlement not only prohibits him from holding executive positions but also from providing investment advice or promoting any crypto-related services.
As part of the agreement, Mashinsky could face conditional payments totaling up to $35 million if he fails to comply with specific terms. This includes a $25 million payment to New York unless he meets certain federal forfeiture conditions.
James emphasized the importance of protecting investors, stating, “I will not allow scammers to use cryptocurrencies to prey on unsuspecting New Yorkers.” The lawsuit against Mashinsky, initiated in January 2023, highlighted how he misrepresented the risks associated with Celsius, affecting over 26,000 New Yorkers.
Mashinsky is currently serving a 12-year federal prison sentence for commodities and securities fraud, which further complicates his financial obligations. The fallout from Celsius's collapse has left many depositors with significant losses, prompting ongoing scrutiny of the crypto lending sector.
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