Alex Mashinsky, founder & former CEO of the now-bankrupt Celsius Network, has been permanently banned for life from crypto.
A U.S. judge (SDNY) just approved an FTC settlement that:
• Permanently bars him from promoting, marketing, offering, or distributing any products/services involving depositing, exchanging, investing, or withdrawing crypto/assets.
• Requires him to pay $10 million to the FTC.
• Includes a suspended $4.72 billion restitution judgment that can be fully reinstated if he misrepresents his finances or hides assets.
This builds on the 2023 FTC case against Celsius (which settled similarly). Mashinsky and other execs continued fighting the civil case until now.
Background: Celsius collapsed in mid-2022 during the crypto crash, freezing customer withdrawals. The platform had attracted billions by promising high yields and “bank-like” safety, but was accused of misleading users, misusing deposits, and running an “old-fashioned swindle.”
Mashinsky faced criminal charges (securities fraud, commodities fraud, market manipulation) for deceiving customers about platform stability and manipulating the CEL token. He pleaded guilty in late 2024 and was sentenced to 12 years in prison in May 2025, plus forfeiture of ~$48 million.
This FTC settlement is the final civil regulatory hammer on top of his criminal conviction. Users suffered massive losses (tens of billions in exposure at peak), though some assets have been recovered through bankruptcy proceedings.
Another major crypto exec facing lifelong consequences from the 2022 meltdown.
ALT Celsius founder banned from crypto