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CoinDesk1 min read
CEO Behind $4.7 Billion Crash Banned From Crypto, But How Will This Work?
TL;DR
Celsius founder Alexander Mashinsky has been permanently banned from crypto as part of a $10 million settlement with the FTC, following his role in the $4.7 billion 2022 crypto crash. He is currently serving a 12-year sentence.
Key points
- Mashinsky banned from crypto permanently
- Part of $10 million FTC settlement
- Responsible for $4.7 billion crypto crash
- Currently serving a 12-year prison sentence
- Monetary judgment of $4.72 billion suspended
Mentioned in this story
Alexander MashinskyCelsiusFederal Trade Commission
Celsius founder Alexander Mashinsky, who was responsible for the $4.7 billion 2022 crypto crash, has been banned from crypto. This forms part of a $10 million settlement with the Federal Trade Commission (FTC) while the crypto founder continues to serve a 12-year sentence.
Celsius Founder Banned From Crypto As Part of $10 Million FTC Settlement
A court order filed by the FTC shows that the Celsius founder is permanently banned from crypto. The order stipulates that Mashinsky is not allowed to advertise, market, promote, offer, distribute, or assist in doing any of these things with respect to products or services used to deposit, exchange, invest, or withdraw assets.
This crypto ban forms part of a $10 million settlement with the FTC. The order included a $4.72 billion monetary judgment against the Celsius founder in favor of the Commission. This sum relates to Mashinsky’s role in the 2022 crash of his crypto lending platform, which left customers unable to access $4.7 billion in deposits.
However, this monetary judgment is suspended, and Mashinsky has been ordered to pay $10 million to satisfy this monetary relief. The order also noted that the crypto founder shall be deemed to have satisfied the payment obligation if he pays this amount to the Department of Justice (DOJ) pursuant to the forfeiture order entered in his criminal case.
It is worth noting that the Celsius founder is currently serving a 12-year sentence for fraud and market manipulation. The crypto founder had pleaded guilty in 2024 to committing commodities fraud and securities fraud at Celsius and was subsequently sentenced last year. The prosecution revealed that Mashinsky had used customers’ assets to place risky bets and to “line his own pockets.”
In addition to his prison term, the Celsius founder was also sentenced to three years of supervised release and ordered to pay a $50,000 fine and forfeit $48 million.
Q&A
What was Alexander Mashinsky's role in the $4.7 billion crypto crash?
Alexander Mashinsky was the founder of Celsius and was responsible for the company's collapse, which resulted in customers losing access to $4.7 billion in deposits.
What are the terms of the FTC settlement with Mashinsky?
The settlement includes a permanent ban from crypto activities and a $10 million payment, while a $4.72 billion judgment against him is suspended.
How long is Mashinsky's prison sentence?
Alexander Mashinsky is serving a 12-year prison sentence related to his actions that led to the crypto crash.
