- CFTC permanently bans Alex Mashinsky from U.S. commodities and futures trading.
- Celsius collapse allegations led to criminal penalties and lifetime restrictions.
- SEC lawsuit remains active as settlement talks continue over Celsius claims.
Alex Mashinsky, the founder and former chief executive of Celsius Network, has been barred from trading in U.S. commodities, futures, and derivatives markets after the U.S. Commodity Futures Trading Commission (CFTC) secured a final judgment against him.
The regulatory actions follow the collapse of Celsius in 2022, a failure that affected hundreds of thousands of customers and led to criminal, civil, and regulatory proceedings against the company’s leadership.
CFTC Finalizes Enforcement Action
The CFTC announced that Mashinsky agreed to a consent order that permanently prohibits him from trading in markets regulated by the agency and from registering with the commission in any capacity. The order also restricts him from violating specific anti-fraud provisions contained in the Commodity Exchange Act and related CFTC regulations.
According to the CFTC, Celsius operated as a digital asset platform where customers deposited cryptocurrencies that were pooled and deployed to generate revenue. The company promoted weekly interest payments and rewards to users while managing the assets on their behalf.
Allegations Centered on Risk and Customer Representations
The agency’s complaint covered conduct between 2018 and at least June 2022. Regulators alleged that Mashinsky marketed Celsius as a secure alternative for digital asset holders while offering high-yield returns.
The complaint stated that the company increased its exposure to risk through activities that included uncollateralized lending and participation in decentralized finance agreements. Regulators further alleged that customers were told their assets were safe despite mounting losses within the business.
Celsius then filed for bankruptcy after its financial position deteriorated, becoming one of the most closely watched failures in the cryptocurrency sector during that period.
Criminal Conviction and Additional Restrictions
Mashinsky’s regulatory penalties follow his criminal conviction. In December 2024, he pleaded guilty to securities fraud and commodities fraud charges. A federal court later sentenced him to 12 years in prison in May 2025.
The sentence included a $50,000 fine and an order requiring forfeiture of approximately $48.39 million.
Earlier in 2026, Mashinsky also reached a settlement with the Federal Trade Commission. Under that agreement, he received a permanent ban from participating in businesses involved in cryptocurrency or financial services products used to deposit, exchange, invest, or withdraw assets.
Separate SEC Case Still Unresolved
Despite the latest CFTC order, Mashinsky still faces a separate civil lawsuit brought by the U.S. Securities and Exchange Commission.
The SEC alleges that he conducted an unregistered securities offering, misrepresented Celsius’ operations and safety practices, and manipulated the price of the company’s CEL token. Court filings indicate that settlement discussions between the parties remain ongoing, although no agreement has been finalized.
Related: CME Group Plans Lawsuit Against CFTC Over Bitcoin Perpetual Futures
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