Federal Court Bans Ex-Celsius CEO Mashinsky from Finance in FTC Settlement

A U.S. federal court in New York entered a settlement on Tuesday between former Celsius Network CEO Alex Mashinsky and the Federal Trade Commission, imposing a permanent ban on his involvement in financial services and a $4.72 billion judgment, most of which is suspended pending his compliance with financial disclosures.

The order, signed by Judge Denise Cote in the Southern District of New York, requires Mashinsky to pay $10 million to the FTC. This obligation can be satisfied through payments made under a separate Department of Justice forfeiture order in his criminal case. The larger judgment remains suspended unless Mashinsky fails to disclose material assets, misrepresents their value, or provides other inaccurate financial information. In such a case, the full amount could become due, reduced by prior payments to the FTC, consumers via the DOJ, or through Celsius bankruptcy distributions and contributions from other defendants.

The settlement stems from allegations that Mashinsky and Celsius executives engaged in deceptive practices by misleading customers about the platform's profitability, investment risks, and the safety of their funds. Celsius Network, a crypto lending...