New York Secures “Up to $35 Million” and a Permanent Ban From Ex-Celsius CEO Alex Mashinsky, but Both Sums Are Conditional

On 9 October 2026 New York Attorney General Letitia James announced that she has secured “up to $35 million” from Alex Mashinsky, the co-founder and former CEO of crypto lender Celsius, plus a permanent ban on his taking part in the securities, commodities and cryptocurrency industries. The ban is confirmed. The “up to $35 million” is a ceiling, and the paperwork shows how it could come to nothing.

The money: two conditions

Confirmed (NY AG press release). The release says: “Under a settlement with OAG, Mashinsky must pay $25 million to New York if he fails to forfeit $10 million in ill-gotten gains to the federal government, in addition to already forfeited assets, as part of his federal plea agreement. Mashinsky must also pay $10 million to New York if he does not serve his full prison sentence, as mandated by the criminal court and overseen by the Bureau of Prisons” [1].

So there are two separate sums, each triggered by a failure. If he forfeits the $10 million to the federal government and serves his full sentence, neither sum is payable on those terms, and New York may collect nothing. The $35 million is the most it could be, not an amount received.

More detail from the filed order (goes beyond the release). The consent order says the $25,000,000 is “deemed satisfied” once he pays $10,000,000 to the Justice Department under its forfeiture order, with credit for payments made after 20 May 2025 [2]. It says the $10,000,000 is “deemed satisfied” when he finishes his sentence, “unless such sentence is overturned or reduced” by a court, including through a petition under 28 U.S.C. § 2255, or reduced by compassionate release, good-time or earned-time credits, First Step Act release or home confinement [2]. The release does not list these.

The ban

Confirmed. The AG says Mashinsky “will be permanently barred from doing business in the securities, commodities, and cryptocurrency industries” [1]. CoinDesk calls it a lifetime ban [3]. The order bars him from the securities or commodities business “including any business involving cryptocurrency or digital assets”, from giving investment advice for pay, and from forming or working for any entity that solicits investors. The first bar applies “other than for Defendant Alex Mashinsky’s own personal purchase or sale” [2]. The order text TSN read sets no end date for these bars.

In the stipulation, dated 8 October 2026, he admits violating New York’s Martin Act and Executive Law § 63(12), and agrees not to publicly deny its findings [2].

The background

Mashinsky is serving a 12-year sentence, which the stipulation records as 144 months imposed on 8 May 2025, after pleading guilty in the federal case to commodities fraud and to a scheme to manipulate the price of Celsius’s CEL token [2]. He was also ordered to forfeit $48,393,446 federally [2]. The AG says more than $3.4 billion had been distributed to creditors in Celsius’s bankruptcy “as of August of 2026” [1].

What this does not prove

• That New York will receive $35 million. The figure is a maximum, and each part is payable only if a condition fails [1][2].
• That investors will get anything from this settlement. The release does not say where any payment would go.
• That the order is final. The stipulation is filed, but the judge’s signature line was blank on the copy TSN read [2].
• That the sentence cannot change. The filing refers to a § 2255 petition by Mashinsky, and the order says a reduced sentence would affect the $10 million [2].

The Bottom Line

New York has a permanent bar on Alex Mashinsky and a conditional claim of up to $35 million: $25 million if he fails to forfeit $10 million federally, and $10 million if he does not serve his full sentence. If he meets both, New York may collect nothing. The headline number is the ceiling.

Sources

1. New York Attorney General, “Attorney General James Bans Former Cryptocurrency CEO Who Defrauded Investors from Financial Industry”, press release, 9 October 2026 (the AG’s own wording). https://ag.ny.gov/press-release/2026/attorney-general-james-bans-former-cryptocurrency-ceo-who-defrauded-investors
2. People of the State of New York v. Alex Mashinsky, Index No. 450040/2023 (NY Sup. Ct.), Stipulation and Consent to Judgment with annexed Consent Order and Judgment, stipulation dated 8 October 2026, NYSCEF Doc. 138, filed 8 October 2026 (court filing; judge’s signature line blank on this copy). https://ag.ny.gov/sites/default/files/settlements-agreements/new-york-v-alex-mashinsky-stipulation-2026.pdf
3. CoinDesk, Olivier Acuna, “New York AG secures up to $35 million and lifetime crypto ban from Celsius’ Alex Mashinsky”, 9 October 2026 (report; repeats the AG’s conditions). https://www.coindesk.com/policy/2026/10/09/new-york-ag-secures-up-to-usd35-million-and-lifetime-crypto-ban-from-celsius-alex-mashinsky