Celsius Founder Alex Mashinsky Receives Lifetime Trading Ban in CFTC Settlement

The founder of Celsius, Alex Mashinsky, has reached a settlement with the US commodities regulator, bringing the agency’s first enforcement action involving a cryptocurrency lending platform to a close.

The US Commodity Futures Trading Commission has concluded its enforcement case against Celsius Network co-founder Alex Mashinsky, imposing a permanent prohibition that prevents him from participating in markets regulated by the commodities watchdog.

On Thursday, the CFTC stated that a court-approved consent order prohibits Mashinsky from ever seeking registration with the agency and formally closes the enforcement case that the regulator initiated in 2023.

“Mashinsky and Celsius engaged in a scheme to defraud hundreds of thousands of customers by mispresenting the safety, profitability, and regulatory compliance of Celsius’ digital asset-based finance platform,” the regulator said.

Under the latest ruling, Mashinsky will be permanently prevented from participating in US commodities, futures, and derivatives markets. Earlier this year, guidance was released by the CFTC and the US Securities and Exchange Commission indicating that most leading cryptocurrencies were viewed as commodities by the agencies.

The agreement also concludes the CFTC’s first enforcement case involving a cryptocurrency lending platform and effectively closes one of the final outstanding regulatory proceedings still facing Mashinsky.

In May 2025, Mashinsky received a 12-year prison sentence after admitting guilt to securities and commodities fraud charges tied to misleading Celsius users about the platform’s safety. The crypto lending company later collapsed during the severe market downturn that struck the industry in 2022.

Mashinsky Faces Multiple Regulatory Actions and Industry-Wide Bans#

The CFTC claimed that Celsius attracted roughly $20 billion in customer deposits and pursued high-risk investment strategies in an effort to generate the returns that had been promised to its users.

Mashinsky has already been permanently prohibited from working in the cryptocurrency and financial sectors after reaching a settlement with the Federal Trade Commission in April, which barred him from participating in any product or service used to deposit, exchange, invest, or withdraw assets.

Mashinsky continues to face charges brought by the SEC in July 2023, which allege that he conducted an unregistered securities offering, provided misleading information about Celsius’ operations and security measures, and manipulated the market value of the platform’s Celsius (CEL) token.

In late May, the SEC informed a federal court that it had participated in substantial settlement negotiations with Mashinsky, although no final resolution had been achieved. The court approved the regulator’s request for an additional 60-day period to allow the discussions to move forward.

On May 26, Mashinsky submitted a motion seeking to overturn his 12-year prison sentence, arguing that his legal representation failed to provide effective counsel, that authorities had compromised key evidence through misconduct, and that manipulation of the CEL token was carried out by FTX co-founder and convicted fraudster Sam Bankman-Fried.

On Saturday, a court directed prosecutors to submit their response to Mashinsky’s motion no later than the middle of August.