James sued Mashinsky in 2023 according to a press release, saying he misled hundreds of thousands of investors, including more than 26,000 New Yorkers, about the safety of their Celsius deposits
Mashinsky is serving a 12-year federal prison sentence after pleading guilty to securities and commodities fraud. He was also permanently barred from commodities activity by the Commodity Futures Trading Commission (CFTC) in June
Under the New York settlement, Mashinsky must pay the state $25 million if he does not forfeit $10 million in ill-gotten gains to the federal government. He must pay a further $10 million if he fails to serve his full prison sentence, according to the attorney general’s office
Celsius froze customer withdrawals in June 2022 and filed for bankruptcy a month later
Celsius customers and creditors have received more than $3.4 billion through the bankruptcy proceeding as of August, the attorney general said. The company had planned to distribute roughly $3 billion in crypto and cash when it emerged from bankruptcy in 2024, using Coinbase and PayPal for payments
James said Mashinsky had promoted Celsius as safer than a bank while the company used customer assets in risky strategies and concealed losses. “I will not allow scammers to use cryptocurrencies to prey on unsuspecting New Yorkers,” she said
Diversified RWA stablecoins sustain 5-7% yield from real credit as crypto funding compresses to ~4%. GENIUS pushes yield off-chain; TAM grows to $4B in 3 years
Diversified RWA stablecoins sustain 5-7% yield from real credit as crypto funding compresses to ~4%. GENIUS pushes yield off-chain; TAM grows to $4B in 3 years
