Celsius Founder Locked Out of Crypto After $10 Million Deal

Alex Mashinsky, the former face of Celsius Network, has been permanently barred from any crypto-related activities following a settlement with the FTC for $10 million.
The original court order sought a staggering $4.7 billion tied to Celsius’s collapse, but most of that amount was suspended. Only a single payment and an industry ban remain in force.

Key Provisions of the Settlement

• Advertising & Promotion Ban
  Mashinsky cannot advertise, promote, or help distribute any crypto product. This includes any platform that allows deposits, trading, investing, or withdrawals of digital assets—even if it operates under a different company.

• Permanent Restriction
  The ban is permanent, unless Mashinsky hides assets or lies about his finances. In such cases, the FTC can lift the suspension and recover the larger judgment.

• Criminal Penalties
  He faces a 12‑year prison sentence for fraud and manipulating the price of Celsius’s own token.

• Record-Keeping Obligation
  Mashinsky must maintain detailed records for up to 18 years, ensuring regulators stay informed about his future dealings.

Broader Context

This action is part of a wider crackdown on crypto lenders. Other firms, such as BlockFi and Genesis, have also faced civil and criminal probes, illustrating regulators’ tightening grip on companies that promised safe crypto deposits.