Celsius founder Alex Mashinsky agreed to a Federal Trade Commission settlement that permanently bars him from promoting financial products involving customer assets. A federal court entered the order on April 28, 2026, requiring a $10 million payment against a broader $4.72 billion judgment that remains largely suspended.
Terms of the Court Order
Judge Denise Cote in the Southern District of New York signed the stipulated order Tuesday. It permanently bars Mashinsky from advertising, marketing, promoting, offering or distributing any product or service through which customers can deposit, exchange, invest, or withdraw assets. The restriction has no expiration date.
The court entered a $4.72 billion monetary judgment in favor of the FTC against Mashinsky, but suspended most of it. His immediate payment obligation is $10 million. The payment can also be satisfied through his criminal case. If he pays at least $10 million to the US Department of Justice under the criminal forfeiture order, his FTC obligation is considered fulfilled.
The FTC filed its case against Mashinsky in 2023, accusing him of deceptively promoting Celsius services and hiding risks from customers. The civil case ran alongside criminal proceedings and ends with the signed consent order. The ban covers a wide range of activities, from direct advertising to affiliate program participation.
When the Suspended Judgment Could Be Revived
The suspension of the remaining judgment is conditional. The FTC can ask the court to lift it if Mashinsky failed to disclose a material asset or misstated its value in his financial disclosures. Once lifted, the full $4.72 billion becomes immediately due.
The debt would be reduced by amounts already paid to the FTC or DOJ, plus compensation provided by other defendants through the Celsius bankruptcy. This structure lets the regulator preserve maximum legal claims without forcing their immediate collection.
The order gives the FTC long-term oversight of Mashinsky's finances. If he complies with disclosure requirements, the suspended judgment stays dormant. If he does not, creditors and the regulator gain legal grounds for full collection.
The Celsius Collapse and Criminal Conviction
Celsius froze customer withdrawals in June 2022 after the market dropped sharply and it became clear the platform lacked sufficient liquid funds. The company filed for bankruptcy weeks later. Billions of dollars in Bitcoin, Ethereum and other assets from more than one million users were locked on the platform.
Celsius marketed itself as a safe alternative to a bank account and promised customers interest payments for depositing crypto. Prosecutors said Mashinsky misled customers for years about the company's profitability, the risk to their funds and the actual state of the business. In May 2025, he pleaded guilty to commodities fraud and securities fraud, and a federal court sentenced him to 12 years in prison.
The April 28, 2026 FTC settlement closes the agency's civil case while Mashinsky serves his prison sentence. His financial disclosures remain under ongoing FTC supervision.
What Former Customers Can Expect
The Celsius bankruptcy process concluded in 2024. Most creditors received partial payments in Bitcoin at then-current market prices, but many did not recover their full losses. The FTC settlement opens a separate repayment channel through criminal forfeiture payments.
Full recovery remains unlikely. Mashinsky's disclosed assets do not cover total losses from the collapse. The suspended $4.72 billion judgment serves as a legal backstop if future reviews uncover hidden assets.
The Celsius case stands as one of the most prominent failures of centralized crypto lending platforms that gave customers false safety assurances. The FTC settlement adds civil accountability alongside the criminal conviction already in place.
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