BEARISH 📉 : FTC permanently bans Celsius founder Mashinsky from crypto in $10M settlement
FTC bans Mashinsky from crypto, $10M deal; judge denies SBF retrial
Alexander Mashinsky got a permanent crypto ban under a $10 million FTC settlement. A federal judge also denied Sam Bankman-Fried a new trial.
An FTC court order permanently bars the ex-Celsius CEO from advertising, marketing, promoting, offering, distributing, or helping with products or services used to deposit, exchange, invest, or withdraw assets. Read the court order.
The order enters a $4.72 billion judgment tied to Celsius’s 2022 collapse, which left customers unable to access $4.7 billion in deposits. The monetary judgment is suspended while Mashinsky pays $10 million. Sources: FTC order, Celsius deposit losses background.
Payment can be deemed satisfied if the $10 million is paid to the DOJ under the forfeiture order in his criminal case. DOJ forfeiture reference.
Mashinsky is serving 12 years after pleading guilty in 2024 to commodities and securities fraud at Celsius. He also got three years’ supervised release, a $50,000 fine, and $48 million forfeiture. Sentencing background.
Sam Bankman-Fried’s bid for a new trial was denied. The judge rejected his claim of new exculpatory witnesses as baseless. ABC report, case filing coverage.
SBF is serving 25 years for the FTX collapse after using up to $8 billion in customer funds. Details, FTX background.
