The CFTC has reached a final settlement with Celsius Network founder Alex Mashinsky. The order permanently bans him from trading on CFTC-regulated markets and from registering with the agency in any capacity.
A federal court in the Southern District of New York approved a consent order that permanently bars Mashinsky from trading on CFTC-regulated markets and registering with the agency in any capacity. The decision closes the CFTC’s 2023 lawsuit and marks the final regulatory action against the former Celsius chief.
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The Scheme: Celsius Promised Safety and Yield — Users Lost Billions
The CFTC said Mashinsky and Celsius “engaged in a scheme to defraud hundreds of thousands of customers by misrepresenting the safety, profitability, and regulatory compliance of the digital asset platform.” According to the complaint, Celsius took about $20B from clients and made risky investments to deliver promised high yields.
The company issued unsecured loans and entered risky DeFi agreements. Meanwhile, management continued to assure users their funds were safe—even as losses mounted.
Celsius filed for bankruptcy in 2022 amid the broader crypto meltdown, becoming one of the most high-profile collapses of that period.
A Series of Penalties: 12 Years in Prison, Fines, Forfeiture, and Permanent Bans
Mashinsky is already serving a 12-year prison sentence after pleading guilty to securities and commodities fraud. In May 2025, the court also sentenced him to a $50K fine and $48.39M in forfeiture. The Federal Trade Commission has permanently banned him from working with any products or services used for depositing, exchanging, investing, or withdrawing assets.
Meanwhile, the SEC is still pursuing its case against Mashinsky. The agency accuses him of conducting an unregistered securities offering, misrepresenting Celsius’s business, and manipulating the CEL token price.
In late May, the SEC told the court it is in “substantial settlement negotiations” with Mashinsky and requested an additional 60 days to continue discussions. On May 26, Mashinsky filed a motion to vacate his sentence, arguing that his lawyers were ineffective and that evidence was compromised. The court has ordered prosecutors to respond by mid-August.
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