A U.S. federal judge has entered a $4.72 billion judgment against Alex Mashinsky, the founder and former CEO of the failed crypto lending platform Celsius Network, and permanently barred him from operating in the cryptocurrency and financial services industries. The consent decree, signed on April 28, 2026, by Judge Denise L. Cote of the Southern District of New York, resolves civil charges brought by the Federal Trade Commission (FTC) against Mashinsky individually. While the monetary judgment totals $4.72 billion, Mashinsky is required to pay only $10 million, an amount that will be offset by his existing criminal forfeiture obligations to the Department of Justice (DOJ).
Background and Misconduct
Mashinsky is currently serving a 12-year federal prison sentence after pleading guilty in December 2024 to commodities fraud and securities fraud. He admitted to misleading users about Celsius' financial health, manipulating the price of CEL, the platform's native token, while secretly selling off his own holdings. The FTC first sued Celsius and three of its executives in July 2023, alleging that Mashinsky told customers their deposits were safe, low-risk, and available on demand, while Celsius funneled those funds into high-risk investments and lending strategies.
Scope of the Lifetime Ban
The permanent injunction prohibits Mashinsky from advertising, marketing, promoting, offering, or distributing any product or service that allows consumers to deposit, exchange, invest, or withdraw assets. This 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 materially false statements in financial filings. The judgment is non-dischargeable in bankruptcy, and compliance obligations, including recordkeeping and reporting, extend for up to 18 years.
Celsius Collapse and Regulatory Aftermath
Founded by Mashinsky in 2017, Celsius Network once held billions in user assets and marketed itself as safer than a bank. In June 2022, the platform froze user withdrawals and filed for Chapter 11 bankruptcy the following month. The collapse left users with losses estimated in the billions, though bankruptcy proceedings have returned some funds. Prosecutors said Mashinsky personally profited tens of millions of dollars from the scheme. The settlement with the FTC allows the $10 million civil payment to be credited against Mashinsky's criminal forfeiture obligation, aligning compensation across enforcement actions.
Broader Enforcement Context
The resolution follows similar FTC actions against BlockFi and Genesis, reflecting continued federal scrutiny of crypto lending platforms that imploded during the 2022 market downturn. Mashinsky remains in federal custody. The civil decree adds permanent restrictions that would apply to any activities after his eventual release. This case marks a significant milestone in holding crypto executives personally accountable and serves as a warning to others facing similar investigations.