Alex Mashinsky, former CEO and founder of collapsed crypto lending platform Celsius Network, reached a $10 million settlement with the Federal Trade Commission that permanently bans him from working in the cryptocurrency industry.
The FTC initially secured a $4.7 billion judgment against Mashinsky tied to losses from the Celsius collapse, though the vast majority of that has been suspended, with only $10 million required to be paid.
“Mashinsky is permanently restrained and enjoined from advertising, marketing, promoting, offering, or distributing, or assisting in the advertising, marketing, promoting, offering, or distributing of any product or service that can be used to deposit, exchange, invest, or withdraw assets, whether directly or through an intermediary,” the court order states.
The suspended judgment can be lifted if the FTC asks the court and finds that Mashinsky failed to disclose a material asset, misstated asset value, or made material misstatements in financial disclosures, according to court documents. The settlement order also imposes reporting and record-keeping requirements for up to 18 years.
The lifetime industry ban follows a pattern of increased regulatory scrutiny of crypto lending platforms. Authorities have pursued both civil and criminal cases against founders of collapsed firms including BlockFi and Genesis, with the FTC's enforcement action against Mashinsky representing the latest in this regulatory campaign.
