Celsius founder Alexander Mashinsky, who was responsible for the $4.7 billion crypto crash in 2022, has been banned from crypto. This is part of a $10 million settlement with the Federal Trade Commission (FTC). the crypto founder is still serving a twelve-year prison sentence.
Celsius Founder Banned From Crypto As Part Of $10 Million FTC Settlement
A court order A filing by the FTC shows that Celsius’ founder has been permanently banned from crypto. The order provides that Mashinsky may not advertise, market, promote, offer, distribute or assist in doing any of these things with respect to products or services used for depositing, exchanging, investing or withdrawing assets.
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This crypto ban is part of a $10 million settlement with the FTC. The order included a monetary judgment worth $4.72 billion against Celsius’s founder, in favor of the Commission. This amount relates to Mashinsky’s role in his country’s 2022 crash crypto lending platformleaving customers without access to $4.7 billion in deposits.
However, this monetary judgment is suspended and Mashinsky has been ordered to pay $10 million to satisfy this monetary relief. The decision also states that the crypto founder is deemed to have met the payment obligation if he pays this amount to the foundation Department of Justice (DOJ) pursuant to the forfeiture order included in his criminal case.
It is worth noting that the founder of Celsius is currently serving a twelve-year prison sentence fraud and market manipulation. The crypto founder had pleaded guilty in 2024 to committing commodity fraud and securities fraud at Celsius and was subsequently convicted last year. The prosecutor revealed that Mashinsky had used clients’ assets to place risky bets and “line his own pockets.”
In addition to his prison sentence, the Celsius founder was also sentenced to three years of supervised release and ordered to pay a $50,000 fine and forfeit $48 million.
Crypto founder refused new trial in fraud case
Sam Bankman-Fried (SBF), who, like Mashinsky, was convicted of fraud, also had that his request rejected for a new trial. According to one ABC reporta federal judge denied SBF’s request for a new trial, rejecting the FTX founder’s claims that there are new witnesses in his case who could provide evidence that would clear him of any wrongdoing.
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The judge described this claim as unfounded. SBF is currently serving a 25-year prison sentence for its role in the collapse of the defunct crypto exchange FTX. Bankman-Fried was found to have used up to $8 billion in client funds for his personal projects.
However, he continues to deny any wrongdoing despite being found guilty, stating that his exchange was always solvent. It is worth noting that SBF also sought a pardon from US President Donald Trump, but the White House has revealed that Trump has no plans to pardon him.
Featured image from iStock, chart from Tradingview.com