Celsius Founder Alex Mashinsky Faces $4.72B FTC Judgment, Gets Lifetime Ban From Crypto

Key Takeaways:

• A federal judge entered a $4.72 billion FTC judgment against Celsius founder Alex Mashinsky on April 28, 2026.
• Mashinsky faces a lifetime ban from crypto and financial services while serving a 12-year federal prison sentence.
• The FTC requires only $10 million in actual payment, coordinated with Mashinsky’s DOJ criminal forfeiture obligations.

FTC Enters $4.72B Celsius Judgment Against Mashinsky, Bans Him From Industry

U.S. District Judge Denise L. Cote signed the stipulated order in the Southern District of New York, resolving the Federal Trade Commission’s civil claims against Alex Mashinsky personally. The order carries a $4.72 billion monetary judgment but requires only $10 million in actual payment, an amount Mashinsky can satisfy through his existing criminal forfeiture obligations with the Department of Justice.

Mashinsky is currently serving a 12-year federal prison sentence. He pleaded guilty in December 2024 to commodities fraud and securities fraud, admitting he misled customers about Celsius’s financial health and manipulated the price of CEL, the platform’s native token, while quietly offloading his own holdings.

The FTC first filed its complaint against Celsius and three of its executives in July 2023, charging them with deceptive and unfair practices under the FTC Act. The agency alleged that Mashinsky told customers their deposits were safe, low-risk, and accessible on demand while Celsius funneled those funds into high-risk investments and lending strategies.

Celsius settled its corporate claims with the FTC in August 2023. That settlement imposed a $4.72 billion judgment against the company and permanently banned it from offering crypto deposit, exchange, or withdrawal services. The individual executives, including Mashinsky, were not part of that initial deal.

Mashinsky had initially represented himself after his attorneys withdrew, but the parties reached a stipulated agreement in early 2026. A joint motion to stay the case pending settlement approval was filed in late March, paving the way for the April 28 order.

The permanent ban covers a broad range of activities. Mashinsky is prohibited from advertising, marketing, promoting, offering, or distributing any product or service that allows customers to deposit, exchange, invest, or withdraw assets. The restriction applies to both crypto and traditional finance (TradFi) services.

The full $4.72 billion judgment remains enforceable if Mashinsky fails to accurately disclose his assets or makes material misrepresentations in financial filings. The judgment cannot be discharged in bankruptcy, and compliance requirements, including recordkeeping and reporting obligations, extend up to 18 years.

Celsius Network, which Mashinsky founded in 2017, once held billions in customer assets and marketed itself as safer than a bank. In June 2022, the platform froze customer withdrawals and filed for Chapter 11 bankruptcy in July of that year. The collapse left customers facing losses estimated in the billions, though bankruptcy proceedings have returned some funds.

DOJ prosecutors said the schemes caused billions in customer losses while Mashinsky personally profited tens of millions. The FTC settlement allows the $10 million civil payment to count toward the DOJ criminal forfeiture amount, coordinating relief across both enforcement actions.

The resolution follows similar FTC actions against Blockfi and Genesis, reflecting ongoing federal scrutiny of crypto lending platforms that collapsed during the 2022 market downturn. Mashinsky remains in federal custody. The civil order adds permanent restrictions that would apply to any activities after his eventual release.