Alex Mashinsky, the former CEO and founder of the defunct Celsius Network, has agreed to a $10 million settlement with the Federal Trade Commission, which includes a lifetime ban from the cryptocurrency industry.
This agreement modifies an earlier $4.7 billion judgment related to customer losses following Celsius's collapse. The FTC secured the initial judgment, but a significant portion is suspended.
The settlement permanently prohibits Mashinsky from engaging in any activities related to offering or distributing products or services for asset management in the crypto space.
This ban is part of a broader regulatory push against crypto lending platforms. Authorities have taken action against founders of other failed firms. Celsius filed for bankruptcy in 2022 after halting customer withdrawals. Mashinsky is currently serving a 12-year prison sentence for commodities fraud and market manipulation.