In a settlement with the US Federal Trade Commission (FTC), Celsius founder Alexander Mashinsky agreed to a permanent ban on advertising asset-related products and to pay $10 million as part of a larger, mainly suspended $4.72 billion verdict.
Judge Denise Cote of the Southern District of New York entered the stipulated order on Tuesday, saying that Mashinsky is “permanently restrained and enjoined” from using any product or service that allows one to “deposit, exchange, invest, or withdraw assets” in any way, shape, or form.
Settlement Follows Fraud Conviction and Celsius Collapse
The court partially delayed a $4.72 billion monetary judgment that the FTC had previously imposed against Mashinsky. The FTC has ordered Mashinsky to pay $10 million. On the other hand, the ruling said that he might fulfill this requirement by paying the US Department of Justice $10 million as part of the forfeiture order related to his criminal case.
This settlement compounds the legal consequences of Celsius’s 2022 collapse, but it does not preclude the FTC from pursuing a bigger judgment in the event that Mashinsky is shown to have misrepresented or failed to disclose assets in his financial filings.
After pleading guilty to commodities fraud and securities fraud in May 2025, Mashinsky was sentenced to 12 years in jail. Prosecutors said that he deceived Celsius clients over the profitability of the firm, investment dangers, and the security of their assets.
The judgment’s remaining balance, over and above the $10 million payment requirement, is stayed, subject to certain conditions, as stated in the ruling.
It may be removed if the court determines that Mashinsky committed major misstatements or omissions in his financial declarations, fails to report a material asset, or misstates the value of an asset, as requested by the FTC.