Celsius Founder Alex Mashinsky Receives Lifetime Crypto Ban and $10 Million FTC Settlement

Former Celsius Network CEO Alex Mashinsky received a lifetime ban from cryptocurrency and financial services and agreed to pay $10 million as part of a $4.72 billion FTC judgment following the 2022 collapse of his crypto lending platform. Mashinsky, currently serving a 12-year federal prison sentence after pleading guilty to commodities and securities fraud in December 2024, admitted to misleading customers about Celsius's financial health while manipulating the platform's CEL token price and secretly selling his own holdings. The FTC charged that Mashinsky told customers their deposits were safe and accessible while Celsius funneled funds into high-risk investments, ultimately freezing withdrawals in June 2022 and filing for bankruptcy in July 2022, causing billions in customer losses. The settlement allows Mashinsky to satisfy the $10 million payment through existing criminal forfeiture obligations, though the full $4.72 billion remains enforceable if he misrepresents his assets.

Federal judgment and lifetime industry ban against Mashinsky

• ▪A federal judge entered a $4.72 billion judgment against Alex Mashinsky on April 28, 2026
• ▪The Federal Trade Commission first filed its complaint against Celsius and three of its executives in July 2023
• ▪Alex Mashinsky is permanently banned from advertising, marketing, promoting, offering, or distributing any product or service that allows customers to deposit, exchange, invest, or withdraw assets
• ▪The full $4.72 billion judgment against Alex Mashinsky remains enforceable if Alex Mashinsky fails to accurately disclose his assets or makes material misrepresentations in financial filings
• ▪Compliance requirements for Alex Mashinsky, including recordkeeping and reporting obligations, extend up to 18 years
• ▪The judgment against Alex Mashinsky requires only $10 million in actual payment despite the $4.72 billion total
• ▪Alex Mashinsky can satisfy the $10 million payment through his existing criminal forfeiture obligations with the Department of Justice

Criminal conviction and fraudulent conduct at Celsius

• ▪Alex Mashinsky is currently serving a 12-year federal prison sentence
• ▪Alex Mashinsky pleaded guilty in December 2024 to commodities fraud and securities fraud

Celsius Network's collapse and customer impact

• ▪The August 2023 FTC settlement permanently banned Celsius Network from offering crypto deposit, exchange, or withdrawal services
• ▪Celsius Network filed for Chapter 11 bankruptcy in July 2022
• ▪The August 2023 FTC settlement imposed a $4.72 billion judgment against Celsius Network
• ▪Celsius Network settled its corporate claims with the FTC in August 2023
• ▪Alex Mashinsky founded Celsius Network in 2017
• ▪Celsius Network froze customer withdrawals in June 2022

Perspective of Celsius Network customers

• ▪The $10 million payment from Alex Mashinsky represents a fraction of the billions in customer losses from the Celsius Network collapse
• ▪Celsius Network customers lost access to their deposits when withdrawals were frozen in June 2022, leaving many unable to recover their investments