Celsius founder permanently banned from asset management following FTC settlement

CryptoWorld News reports that Celsius founder Alexander Mashinsky reached a settlement with the U.S. Federal Trade Commission (FTC). Under the settlement, he is permanently barred from promoting products related to assets and must pay $10 million. Pursuant to FTC regulations, Mashinsky is “permanently restricted and prohibited” from advertising, marketing, or distributing any services that allow users to deposit, exchange, invest in, or withdraw assets. This settlement relates to a monetary judgment of $4.72 billion; although most of the amount remains suspended.

The FTC said Mashinsky must pay $10 million, and the requirement can be satisfied by paying the corresponding amount through a forfeiture order to the U.S. Department of Justice. If Mashinsky is found to have failed to disclose assets or made material omissions, the FTC may pursue the full judgment.

This settlement is a continuation of the ongoing impact following the Celsius Network collapse in 2022. The company filed for Chapter 11 bankruptcy in July 2022 due to a suspension of withdrawals and disclosure of an asset-liability gap of more than $1.2 billion.