New York AG secures up to $35M settlement from ex-Celsius CEO Alex Mashinsky
In brief
- Alex Mashinsky agreed to pay New York up to $35 million, according to Crypto Briefing.
- The settlement pairs $25 million in damages with a $10 million monetary judgment.
- Federal forfeiture obligations could reduce the $10 million judgment.
- New York alleged deceptive practices misled more than 26,000 state investors.
- Mashinsky is also barred from trading securities or crypto under the settlement.
How the $35 million breaks down
The settlement has two parts, according to Crypto Briefing. The first is a $25 million payment in damages to New York. The second is a $10 million monetary judgment, and Mashinsky's federal forfeiture obligations could potentially reduce it.
That's why the headline number comes with an "up to."
Crypto Briefing reported that New York may not collect the full $35 million, depending on how the federal and state obligations line up. The state payment is a penalty against Mashinsky personally (it isn't part of the Celsius bankruptcy estate).
What the state alleged
The case started as a civil complaint filed in 2023 under the Martin Act, New York's securities fraud statute. Under that law, prosecutors generally don't need to prove a defendant intended to defraud anyone. The attorney general alleged that Celsius and Mashinsky used deceptive practices that misled more than 26,000 New York investors, with the claims centered on the Earn program (which Celsius launched in 2018) and the CEL token.
The complaint also alleged Mashinsky sold 25 million CEL tokens worth $68.7 million without disclosing it, while publicly talking up the token's value.
Celsius filed for Chapter 11 bankruptcy on July 13, 2022. Losses during the bankruptcy topped $4.7 billion, per the same report.
Federal penalties came first
The New York deal isn't the first penalty Mashinsky has faced. In May 2025, he was sentenced to 12 years in prison after pleading guilty to commodities and securities fraud related to Celsius, and he was ordered to forfeit $48,393,446 in the federal case. Federal forfeiture is also what could cut into the state's $10 million judgment.
Crypto Briefing reported two more actions this year. The Commodity Futures Trading Commission entered a consent order in June 2026 that imposed a permanent trading ban, and in July 2026 the Federal Trade Commission reached a $10 million settlement with Mashinsky that included a lifetime ban on promotional activity.
Frequently asked questions
Why might New York not collect the full $35 million from Mashinsky?
The settlement includes a $25 million damages payment and a $10 million monetary judgment. Mashinsky's federal forfeiture obligations could potentially reduce the $10 million judgment, so Crypto Briefing reported New York may not collect the full $35 million, depending on how the federal and state obligations line up.
What is the Martin Act used in the Celsius case?
The Martin Act is New York's securities fraud statute. The state's case against Mashinsky started as a civil complaint filed under it in 2023. Under the Martin Act, prosecutors generally do not need to prove a defendant intended to defraud anyone.
Will the New York settlement money go into the Celsius bankruptcy estate?
No. According to Crypto Briefing, the state payment is a penalty against Mashinsky personally, not part of the Celsius bankruptcy estate. Celsius filed for Chapter 11 on July 13, 2022, and losses during the bankruptcy topped $4.7 billion.
