FTC Bans Ex-Celsius CEO Mashinsky, Enters $4.7B Judgment

The Federal Trade Commission filed an order Tuesday in the U.S. District Court for the Southern District of New York that permanently bars former Celsius CEO Alex Mashinsky from the crypto and broader financial services industries and enters a $4.7 billion judgment tied to losses from Celsius’ 2022 collapse. Most of the judgment is suspended, making Mashinsky immediately liable for $10 million unless he conceals assets or misstates his financial condition.

The FTC’s order prohibits Mashinsky from “advertising, marketing, promoting, offering, or distributing” any product that involves the deposit, exchange or investment of assets. The agency alleged that Mashinsky and other Celsius executives engaged in “deceptive and unfair acts or practices” in how they marketed the platform’s lending and custody services.

The judgment extends a $4.7 billion recovery previously linked to Celsius’ bankruptcy directly to Mashinsky. Under the court order, the suspended portion of the judgment will remain dormant unless specified conditions are met, including a finding that Mashinsky failed to disclose a material asset or otherwise misstated his financial position. The order also imposes reporting and record-keeping obligations on Mashinsky for up to 18 years.

Mashinsky is serving a 12-year federal prison sentence after pleading guilty in December 2024 to commodities fraud and to a scheme to manipulate the price of Celsius’ native CEL token. At sentencing, prosecutors wrote that Mashinsky had “orchestrated one of the biggest frauds in the crypto industry.” Judge John G. Koeltl noted that victims lost life savings and suffered psychological harm.

Celsius halted customer withdrawals in 2022 and later filed for bankruptcy, producing claims from users who said they lost access to funds on the platform. The FTC’s action follows its investigation into whether Celsius’ executives adequately disclosed the risks and the company’s financial health to customers.

The court filing consolidates the FTC’s civil findings with prior bankruptcy-related judgments. The permanent industry ban and the long-term reporting requirements take effect immediately, while collection of the larger monetary judgment depends on whether the conditions for triggering repayment are later met.