Key facts
- Alex Mashinsky, founder of Celsius, is permanently banned from U.S. commodity markets.
- The ban prevents Mashinsky from trading commodity interests or participating in CFTC-regulated markets.
- He is also barred from registering with the CFTC or serving as an officer of a registered entity.
- The CFTC's civil case against Mashinsky is now closed via a consent order.
- Mashinsky previously pleaded guilty to fraud charges and was sentenced to prison.
The U.S. Commodity Futures Trading Commission (CFTC) has finalized its civil enforcement action against Alex Mashinsky, the founder of the defunct cryptocurrency lender Celsius, by securing a permanent ban from U.S. commodity markets. This resolution, formalized through a consent order entered by the U.S. District Court for the Southern District of New York, prohibits Mashinsky from trading commodity interests, participating in CFTC-regulated markets, and registering with the agency.
The CFTC's lawsuit, originally filed in July 2023, accused Mashinsky and Celsius of defrauding hundreds of thousands of customers by misrepresenting the safety and profitability of the platform. The regulator alleged that Celsius, which handled approximately $20 billion in customer assets before its collapse, engaged in risky investment strategies while assuring users their funds were secure.
This civil settlement concludes the CFTC's remaining claims against Mashinsky. It follows his guilty plea in December 2024 to one count each of commodities fraud and securities fraud, related to the same conduct. In May 2025, Mashinsky was sentenced to 12 years in prison, ordered to forfeit $48.4 million, and fined $50,000.
Mashinsky also previously settled with the Federal Trade Commission (FTC) in April 2026, agreeing to pay $10 million to resolve civil fraud allegations. As part of that agreement, a previously entered $4.72 billion judgment was suspended, and he was permanently barred from promoting crypto or digital asset services.