New York State has permanently barred Celsius Network founder Alex Mashinsky from working in the financial industry as part of a $35 million fraud settlement. Celsius froze customer withdrawals in June 2022 before filing for bankruptcy the following month, revealing a shortfall of more than $1 billion between its assets and liabilities, and over $3.4 billion has been distributed to creditors. The agreement follows several settlements with federal regulators: the CFTC permanently barred Mashinsky from trading in June, the FTC barred him from working in crypto and finance in April in exchange for a $10 million payment and a largely suspended $4.72 billion judgment, and the SEC reached a principle agreement with him in September. Since May, Mashinsky, who is representing himself, has been seeking to vacate his federal criminal conviction, a request denied by a judge, and has until Dec. 11 to respond to the government’s opposition to his petition.
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