Celsius Network founder Alexander Mashinsky has agreed to a settlement with the U.S. Federal Trade Commission that permanently bars him from promoting or distributing asset-related services. The order, entered by Judge Denise Cote in the Southern District of New York, restrains him from advertising, marketing, or offering any service that lets users deposit, exchange, invest, or withdraw assets.
$10 Million Down, $4.72 Billion Hanging
The settlement imposes a $4.72 billion monetary judgment, with most of it suspended. Mashinsky must pay $10 million — the same amount he already owes to the Department of Justice under a forfeiture order from his criminal case. If the FTC later finds he misstated assets or failed to disclose material holdings in financial filings, the full judgment can be reinstated and become immediately payable.
This structure preserves the government's ability to pursue greater consumer recovery while limiting the immediate burden. The court retains discretion to revive the penalty if Mashinsky conceals or undervalues assets.
Criminal Conviction and Prison Time
In May 2025, Mashinsky was sentenced to 12 years in prison after pleading guilty to commodities fraud and securities fraud. Prosecutors said he misled Celsius customers about profitability, risks, and the safety of their deposits. The Chapter 11 bankruptcy filing in July 2022 followed a withdrawal halt and revealed a balance sheet gap exceeding $1.2 billion.
Tether Settles for $299.5 Million
Recovery efforts continue. In October 2025, the Blockchain Recovery Investment Consortium — backed by GXD Labs and VanEck — disclosed that Tether had agreed to pay $299.5 million to settle claims related to collateral transfers and liquidations from July 2022, according to a consortium press release.
The settlement closes another chapter in the Celsius saga, though legal and financial fallout persists.