CFTC permanently bans Celsius founder Alex Mashinsky from U.S. commodity markets

The U.S. Commodity Futures Trading Commission [CFTC] has secured a permanent trading and registration ban against Celsius founder and former CEO Alex Mashinsky, bringing its civil enforcement action over the collapsed crypto lender to a close. According to a consent order entered by the U.S. District Court for the Southern District of New York, Mashinsky is permanently prohibited from violating certain anti-fraud provisions of the Commodity Exchange Act and faces lifetime restrictions from participating in regulated U.S. commodity markets. The order resolves the CFTC’s July 2023 lawsuit, which accused Mashinsky and Celsius of misleading customers about the safety, profitability, and regulatory status of the company’s crypto lending platform. Court order imposes lifetime market ban Under the settlement, Mashinsky admitted to violating Section 6[c][1] of the Commodity Exchange Act and related CFTC anti-fraud regulations. The court order permanently bars him from trading commodity interests, entering commodity-related transactions, and controlling trading accounts. It also bars him from soliciting funds for commodity trading and registering with the CFTC in any capacity. The restrictions also prevent Mashinsky from acting as a principal, employee, officer, or agent of any entity registered with the CFTC. The CFTC said the injunction resolves the final outstanding claims against Mashinsky following the agency’s enforcement action against Celsius. Case stems from Celsius collapse The regulator alleged that between 2018 and 2022, Mashinsky and Celsius misrepresented the safety of customer deposits while promoting the platform as a secure alternative to traditional banking. According to the CFTC’s complaint, Celsius pooled customer crypto assets and deployed them into increasingly risky investment strategies while continuing to assure users that their funds were safe. The agency said Celsius ultimately received approximately $20 billion in customer assets before filing for bankruptcy. Mashinsky pleaded guilty in December 2024 to one count of commodities fraud and one count of securities fraud in a parallel criminal case. He was sentenced to 12 years in prison in May 2025 and ordered to pay a $50,000 fine, along with the forfeiture of approximately $48.4 million. Final Summary The CFTC has resolved its case against Alex Mashinsky with a permanent injunction and lifetime bans on trading and registration. The order closes the civil enforcement action tied to Celsius, whose collapse followed allegations that customer funds were exposed to increasingly risky strategies.