FTC Seeks $4.7 Billion Restitution from Alex Mashinsky
The American Federal Trade Commission (FTC) has ruled that former Celsius Network CEO Alex Mashinsky must pay $4.7 billion in compensation for losses stemming from Celsius‘s 2022 collapse. The decision, announced on Tuesday in the U.S. District Court for the Southern District of New York, bans Mashinsky for life from the crypto and financial services industries. Most of the ruling is suspended; Mashinsky is currently only required to pay $10 million. If he lies in his asset declaration or hides significant assets, the full amount will be collected. This development marks the closure of one of the crypto industry’s largest fraud cases. Details of the FTCs $4.7 Billion Ruling Against Alex Mashinsky Celsius was a platform that allowed users to deposit and lend cryptocurrencies; however, its 2022 bankruptcy resulted in billions of dollars in losses. The FTC‘s complaint highlights that Mashinsky and other Celsius executives marketed these services misleadingly and deceived consumers. The ruling places the $4.7 billion liability remaining from Celsius’s bankruptcy directly on Mashinsky; it also imposes reporting and record-keeping requirements for up to 18 years. Mashinsky pleaded guilty in December 2024 to commodity fraud and manipulating the price of Celsiuss CEL token, receiving a 12-year prison sentence. Institutions such