According to CoinMeta, New York Attorney General Letitia James announced a settlement with former Celsius network CEO Alex Mashinsky, imposing a fine of up to $35 million and imposing a lifetime ban on him. Mashinsky was accused of defrauding investors by misleading them about the platform's security and low-risk strategies, while concealing losses caused by venture investments. Under the agreement, Mashinsky will be permanently banned from entering the securities, commodities, and cryptocurrency industries. He is currently serving a 12-year prison sentence and is required to have over $48 million in assets confiscated. As of August 2026, investors and creditors have recovered over $3.4 billion through bankruptcy proceedings.