Celsius founder Alex Mashinsky settles FTC case with $10M payment
The FTC order ties Mashinsky’s $10 million payment to a mostly suspended $4.72 billion judgment that can be revived over asset disclosures.
Celsius Network founder Alex Mashinsky has agreed to pay $10 million to settle charges with the Federal Trade Commission, according to a new court order. The settlement is connected to a much larger $4.72 billion judgment that remains mostly suspended but could be reinstated if Mashinsky fails to comply with asset disclosure requirements.
The FTC case stems from the collapse of Celsius Network in 2022, which left thousands of investors unable to access their cryptocurrency deposits. Mashinsky had promoted the lending platform as offering high yields to retail investors while claiming their funds were safe. The company filed for bankruptcy in July 2022 amid a broader cryptocurrency market downturn and liquidity crisis.
The settlement adds to mounting legal consequences for failed crypto ventures, as regulators continue pursuing executives from collapsed platforms. The suspended $4.72 billion judgment represents one of the largest potential penalties in cryptocurrency enforcement history, though the actual collection depends on Mashinsky's compliance with ongoing disclosure obligations.
Mashinsky still faces separate criminal charges related to his role at Celsius, with prosecutors alleging securities fraud and market manipulation. The criminal case could result in additional penalties and potential imprisonment if he is convicted. Investors are watching whether the settlement funds will contribute to customer restitution efforts currently proceeding through bankruptcy court.
Source: Cointelegraph
