Came across this on CoinDesk: On Friday, New York’s attorney general reached a civil settlement with former Celsius CEO Alex Mashinsky—worth up to about $35 million—and permanently barred him from the securities, commodities, and crypto businesses.
He is already serving a 12-year federal sentence after pleading guilty to securities and commodities fraud. The state settlement terms are straightforward: if he fails to pay about $10 million in ill-gotten gains as required by the federal government, he must pay New York $25 million; if he doesn’t serve his full sentence, he must pay an additional $10 million. The attorney general sued him in 2023, alleging that he misled numerous users, including more than 26,000 New Yorkers, by claiming Celsius was safer than a bank.
As of this August, Celsius’s bankruptcy estate had returned more than about $3.4 billion to customers and creditors combined. The CFTC also permanently barred him from commodities-related business in June this year—now the state has shut the door on his professional eligibility, too.
#Celsius #Regulation
He is already serving a 12-year federal sentence after pleading guilty to securities and commodities fraud. The state settlement terms are straightforward: if he fails to pay about $10 million in ill-gotten gains as required by the federal government, he must pay New York $25 million; if he doesn’t serve his full sentence, he must pay an additional $10 million. The attorney general sued him in 2023, alleging that he misled numerous users, including more than 26,000 New Yorkers, by claiming Celsius was safer than a bank.
As of this August, Celsius’s bankruptcy estate had returned more than about $3.4 billion to customers and creditors combined. The CFTC also permanently barred him from commodities-related business in June this year—now the state has shut the door on his professional eligibility, too.
#Celsius #Regulation