Celsius founder faces lifetime ban, but can trade his own crypto

Bankrupt crypto lender Celsius founder Alex Mashinsky has agreed to a permanent ban from the securities, commodities, and crypto business under a New York settlement announced on Oct. 9.

The agreement also sets conditional state payment obligations of up to $35 million, without creating a new payout to Celsius creditors.

The deal resolves New York’s civil suit, filed in January 2023, and adds state obligations to a separate federal criminal case. Mashinsky is serving a 12-year prison sentence.

What the $35 million figure means

The first obligation is $25 million in damages to New York. Under paragraph 2 of the annexed consent order, that obligation is deemed satisfied by a qualifying $10 million payment to the US Department of Justice under paragraph 11 of his federal forfeiture order.

DOJ payments made after May 20, 2025, may count dollar for dollar toward that $10 million. If the specified payment is not made, New York's Attorney General is due the entire $ 25 million.

The second obligation is a separate $10 million monetary judgment payable to New York. Paragraph 3 says it is deemed satisfied by completion of Mashinsky’s imprisonment under the federal judgment entered May 12, 2025, subject to express exceptions.

Those exceptions cover a sentence overturned or reduced by a court, including through a Section 2255 challenge. The clause also lists compassionate release, good-time credits, earned-time credits, First Step Act early release, and home confinement through a Bureau of Prisons program.

Beyond the payment conditions, New York describes the industry ban as permanent. The agreed restrictions cover securities and commodities businesses, including crypto, and roles such as broker, investment adviser, manager, officer and consultant. They also prohibit investment advice distributed for compensation or economic benefit.

The terms retain an exception for Mashinsky’s own personal purchases or sales. The stipulation also records his admission that he misled investors about Celsius’s regulatory approval and his own sales of Celsius’s CEL token.

The court sentenced Mashinsky on May 8, 2025, and the stipulation records federal forfeiture ordered at $48.4 million.

The New York Attorney General says Celsius distributed more than $3.4 billion to creditors as of August 2026. Qualifying DOJ payments would establish compliance with one settlement condition, but wouldn't establish another creditor distribution.