A federal judge has entered a $4.72 billion judgment against Alex Mashinsky, the founder and former CEO of the collapsed crypto lending platform Celsius Network, and permanently banned him from operating in the cryptocurrency and traditional financial services industries. The consent decree, signed by U.S. District Judge Denise L. Cote in the Southern District of New York on April 28, 2026, resolves the Federal Trade Commission’s civil lawsuit against Mashinsky personally.
Key Terms of the Judgment
The monetary judgment totals $4.72 billion, but the FTC will only require payment of $10 million — an amount that Mashinsky can satisfy through his existing criminal forfeiture obligations with the Department of Justice. The full judgment becomes enforceable if Mashinsky fails to accurately disclose his assets or makes material misrepresentations in financial filings. It cannot be discharged in bankruptcy. Compliance obligations, including recordkeeping and reporting, extend for 18 years.
The lifetime ban covers a wide range of activities: Mashinsky is permanently prohibited from advertising, marketing, promoting, offering, or distributing any product or service that allows users to deposit, exchange, invest in, or withdraw assets — both in crypto and traditional finance (TradFi).
Background: The Rise and Fall of Celsius
Founded by Mashinsky in 2017, Celsius Network once held billions of dollars in user assets and marketed itself as “safer than a bank.” In June 2022, the platform froze user withdrawals amid a market downturn and filed for Chapter 11 bankruptcy the following month. The FTC first sued Celsius and three of its executives in July 2023, accusing them of deceptive and unfair practices under the FTC Act. The agency alleged that Mashinsky told users their deposits were safe, low-risk, and available on demand, while Celsius funneled those funds into high-risk investments and lending strategies.
In August 2023, Celsius settled corporate claims with the FTC, accepting a $4.72 billion judgment and a permanent ban on providing crypto deposit, exchange, or payout services. Individual executives, including Mashinsky, were not part of that initial agreement.
Criminal and Civil Dual Enforcement
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's financial condition and manipulating the price of CEL, the platform's native token, while secretly selling his own holdings. DOJ prosecutors stated that the schemes caused billions of dollars in losses to users, while Mashinsky personally profited by tens of millions of dollars.
The FTC settlement ensures that the $10 million civil payment is credited against Mashinsky's criminal forfeiture liability, aligning compensation across both enforcement actions. The permanent ban will apply to any activities after his eventual release from custody.
Industry Impact and Broader Context
This case follows similar FTC actions against BlockFi and Genesis, reflecting continued federal scrutiny of crypto lending platforms that collapsed during the 2022 market crash. The dual civil-criminal approach signals that regulators are willing to impose lifetime career bans on executives found guilty of fraud, even after corporate bankruptcy. Celsius Network's bankruptcy proceedings have returned some funds to users, but overall losses remain in the billions.
Mashinsky remains in federal custody. The civil decree adds permanent restrictions that will outlive his prison term, ensuring he cannot re-enter the financial services industry in any form.