Key facts
- Former Celsius CEO Alexander Mashinsky has been permanently banned from CFTC-regulated markets.
- Mashinsky must pay a $10 million fine as part of the FTC settlement.
- The CFTC settlement ends the regulator's first case against a crypto lending platform.
- Mashinsky is already serving a 12-year prison sentence for fraud charges related to Celsius's collapse.
- Mashinsky is also facing ongoing charges from the SEC.
Alexander Mashinsky, the former CEO of Celsius Network, has been permanently banned from trading in markets regulated by the Commodity Futures Trading Commission (CFTC) as part of a settlement resolving the regulator's first case against a digital asset lending platform. The CFTC's consent order also bars Mashinsky from registering with the regulator.
Mashinsky is currently serving a 12-year prison sentence after pleading guilty to securities and commodities fraud charges stemming from the collapse of Celsius, which froze withdrawals in June 2022, leading customers to lose billions of dollars.
In addition to the CFTC action, Mashinsky settled with the Federal Trade Commission (FTC) in April, receiving a lifetime ban from working with digital asset products and services and a $10 million fine. A $4.72 billion restitution judgment remains active against him.
Mashinsky has also filed a motion to vacate his prison sentence, citing ineffective counsel and alleging that FTX co-founder Sam Bankman-Fried was responsible for manipulating Celsius's token (CEL). The SEC, which also charged Mashinsky with fraud and unregistered securities offering, is reportedly in settlement discussions with him.
The CFTC's action concludes one of the final regulatory cases against Mashinsky, though the SEC proceedings are ongoing.