The U.S. Commodity Futures Trading Commission (CFTC) has obtained a permanent trading and registration ban against Celsius founder and former CEO Alex Mashinsky, ending his civil action against the collapsed crypto lender.
According to a consent order entered by the U.S. District Court for the Southern District of New York, Mashinsky is prohibited from violating certain anti-fraud provisions of the Commodity Exchange Act and is subject to lifetime restrictions from participating in regulated U.S. commodities markets.
Order resolves CFTC concerns July 2023 lawsuit, which accused Mashinsky and Celsius of misleading customers about the security, profitability and regulatory status of the company’s crypto lending platform.
Court order imposes lifetime market ban
Under the terms of the settlement, Mashinsky admitted to violating Section 6(c)(1)) of the Commodity Exchange Act and associated CFTC antifraud regulations.
The court order permanently prohibits him from trading commodity interests, participating in commodity-related transactions and controlling trading accounts. It also prohibits it from soliciting funds for commodity trading and from 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 remaining outstanding claims against Mashinsky from the agency’s enforcement action against Celsius.
Case stems from Celsius collapse
The regulator alleged that between 2018 and 2022Mashinsky and Celsius misrepresented the security of customer deposits while promoting the platform as a secure alternative to traditional banking services.
According to the CFTC complaint, Celsius pooled its clients’ crypto assets and deployed them in increasingly risky investment strategies while continuing to assure users that their funds were safe.
The agency said Celsius ultimately received about $20 billion in client 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 $50,000 fineas well as the confiscation of approximately $48.4 million.
Final summary
- The CFTC resolved its case against Alex Mashinsky with a permanent injunction and lifetime trading and registration bans.
- The order ends civil action related to Celsius, whose collapse followed allegations that client funds were exposed to increasingly risky strategies.
