FTC Settles with Alex Mashinsky over Celsius Network Collapse

FTC Settles with Alex Mashinsky, Former Celsius Network CEO

Alex Mashinsky, former CEO of Celsius Network, has reached a settlement with the Federal Trade Commission (FTC) for $10 million.

The agreement includes a lifetime ban from promoting cryptocurrency products and services related to investment, exchange, or withdrawal of crypto assets. This permanent prohibition is part of a larger case stemming from customer losses after Celsius's collapse in 2022.

As part of the settlement, Mashinsky agreed to pay $10 million, while most of the FTC's $4.7 billion compensation lawsuit was suspended. However, if Mashinsky fails to comply with asset declaration requirements, the FTC can request that the court reinstate the suspended compensation lawsuit.

The settlement also imposes up to 18 years of reporting and document retention obligations on Mashinsky, reflecting the regulatory pressure on industry leaders following Celsius's collapse and other failed crypto lending platforms.