New York Attorney General Secures Up to $35 Million From Former Celsius CEO Mashinsky

WHY IT MATTERS

Celsius was a company that worked somewhat like a crypto bank — people deposited their crypto and earned interest on it. When Celsius collapsed in 2022, many people lost their savings. The former CEO, Alex Mashinsky, was accused of misleading customers about how safe their money was. This settlement means the New York Attorney General's office has reached a legal agreement where Mashinsky must pay up to $35 million and may be banned from running similar businesses. For anyone new to crypto, this case is a reminder that crypto lending platforms are not the same as traditional banks, which have government-backed deposit insurance. When a crypto platform fails, getting money back can take years of legal proceedings and there is no guarantee of full recovery.