Celsius Network Founder Mashinsky Settles With FTC, Pays $10 Million, Most of $4.72 Billion Judgment Suspended

BlockBeats News, April 29th, Celsius founder Mashinsky has reached a settlement with the Federal Trade Commission (FTC). According to a court order from the Southern District of New York on April 29th, Mashinsky is permanently prohibited from promoting any products or services that can be used for "depositing, exchanging, investing, or withdrawing assets." The agreement also includes a $4.72 billion judgment, but the vast majority of it is suspended. Mashinsky is required to pay $10 million to the FTC, which may also be satisfied through an equal payment to the Department of Justice via a forfeiture order in his criminal case.

If Mashinsky is found to have omitted or misrepresented assets in his financial disclosures, the FTC may seek to lift the stay, at which point the $4.72 billion judgment would immediately take effect. Previously, in May 2025, Mashinsky was sentenced to 12 years in prison for commodity fraud and securities fraud. Prosecutors alleged that he misled users about Celsius's profitability, investment risks, and the security of customer funds.