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The FTC has reached a celsius settlement with Alexander Mashinsky that permanently bars him from promoting asset-related products. The deal also requires a $10 million payment tied to a much larger suspended judgment.
Court order sets broad restrictions
According to the FTC, a stipulated order entered by Judge Denise Cote in the U.S. District Court for the Southern District of New York says Mashinsky is permanently restrained and enjoined from advertising, marketing, promoting, offering, or distributing any service that lets users deposit, exchange, invest in, or withdraw assets.
Moreover, the order imposes a $4.72 billion monetary judgment in favor of the FTC, although most of it remains suspended. Under the settlement, Mashinsky must pay $10 million, and that requirement can be satisfied if he pays at least that amount to the U.S. Department of Justice under a forfeiture order linked to his criminal case.
Suspended judgment terms hinge on disclosure
The FTC said the structure protects the larger consumer recovery claim while limiting the immediate payment burden. However, the agency can still pursue the full judgment if Mashinsky is found to have misstated or failed to disclose assets in required financial filings.
The suspended portion of the $4.72 billion judgment may be reinstated if the FTC asks for further court action and a court finds that Mashinsky misstated asset values, failed to disclose material holdings, or made other significant omissions. If reinstated, the full amount would become immediately due, after credit for any sums already paid under the settlement.
That said, the money would then be distributed to consumers through DOJ forfeiture processes or recovered through related proceedings, including the Celsius bankruptcy. The order also reflects the FTC’s effort to keep a recovery path open without forcing the full amount upfront.
Fallout from Celsius Network’s collapse
The settlement adds to the broader fallout from Celsius Network‘s 2022 collapse, which followed a Chapter 11 filing after the company halted withdrawals and revealed a balance sheet gap exceeding $1.2 billion.
In May 2025, U.S. prosecutors secured a 12-year prison sentence after Mashinsky pleaded guilty to commodities fraud and securities fraud. Authorities said he misled customers about profitability, risks, and the safety of their deposits.
Moreover, recovery efforts tied to Celsius bankruptcy have continued through other legal actions. In October 2025, a consortium backed by GXD Labs and VanEck disclosed that Tether agreed to pay $299.5 million to settle claims linked to collateral transfers and liquidations from July 2022.
The mashinsky penalty order now places new pressure on the remaining legal process, while the broader recovery fight continues across bankruptcy and forfeiture channels. The case remains one of the largest enforcement actions tied to the crypto lending crash.