Alex Mashinsky Reaches $10M FTC Settlement Over Celsius Collapse
Celsius founder agrees to pay $10 million under FTC settlement linked to a largely suspended $4.72 billion judgment that could be reinstated if asset disclosure violations occur.
Alexander Mashinsky, the founder of Celsius, has reached a settlement with the US Federal Trade Commission (FTC) that includes a permanent prohibition from promoting products related to assets and mandates a $10 million payment connected to a broader $4.72 billion judgment that remains largely suspended.
According to the stipulated order filed by Judge Denise Cote in New York's Southern District on Tuesday, Mashinsky faces a permanent restriction that prevents him from engaging in advertising, marketing, promoting, offering or distributing any product or service capable of being used to "deposit, exchange, invest, or withdraw assets."
While the order imposed a $4.72 billion monetary judgment favoring the FTC against Mashinsky, the majority of this amount has been suspended. Mashinsky's current payment obligation stands at $10 million to the FTC. The order specifies, however, that this requirement may alternatively be fulfilled if he pays a minimum of $10 million to the US Department of Justice pursuant to the forfeiture order in his ongoing criminal proceedings.
This settlement represents additional legal consequences stemming from the 2022 Celsius collapse, while simultaneously maintaining the FTC's capacity to seek the full judgment amount should Mashinsky be discovered to have misrepresented or failed to disclose assets in his financial statements.
Mashinsky received a 12-year prison sentence in May 2025 following his guilty plea to charges of commodities fraud and securities fraud, with prosecutors alleging he deceived Celsius customers regarding the company's financial performance, the risks associated with investments and the security of customer deposits.
Suspended judgment can be revived
The order specifies that the portion of the judgment exceeding the $10 million payment requirement remains suspended, though this suspension comes with specific conditions attached.
The suspension may be removed if the FTC petitions the court for such action and the court determines that Mashinsky concealed a material asset, provided false valuations of an asset or committed another material misrepresentation or omission within his financial disclosure statements.
Should the suspension be removed, the order stipulates that the full $4.72 billion judgment would become immediately payable by Mashinsky.
This total would be offset by any payments previously made pursuant to the FTC order, any sums paid to consumers via the DOJ forfeiture order in his criminal proceedings or any amounts Mashinsky can demonstrate were disbursed to consumers by other defendants, including distributions made through the Celsius bankruptcy proceedings.
This framework enables the FTC to maintain a substantial consumer-redress claim while simultaneously restricting Mashinsky's immediate financial obligation to a more limited amount.