Celsius Founder Alex Mashinsky Permanently Banned from Trading in CFTC Settlement

US Regulator Ends Long-Running Celsius Case

The US Commodity Futures Trading Commission (CFTC) has reached a settlement with Celsius Network founder Alex Mashinsky, permanently banning him from trading in markets regulated by the agency. The decision also prevents him from registering with the CFTC in the future.

The order concludes the regulator’s first enforcement case against a crypto lending platform, originally filed in 2023. According to the CFTC, Mashinsky and Celsius misled hundreds of thousands of customers about the safety, profitability, and regulatory status of the platform, which collapsed during the 2022 crypto market downturn.

Legal Consequences and Criminal Case Background

Mashinsky was sentenced to 12 years in prison in May 2025 after pleading guilty to fraud charges related to misleading investors. Regulators said Celsius managed around $20 billion in customer funds while making risky investments to support promised returns.

The settlement adds to earlier penalties that already banned him from working in finance. He is also facing ongoing legal proceedings from the US Securities and Exchange Commission over alleged unregistered securities sales and token manipulation.

Authorities continue to pursue related cases as part of wider enforcement actions in the crypto lending sector following multiple high-profile collapses.