CFTC Secures Permanent Trading Ban Against Celsius Founder Alex Mashinsky

The U.S. District Court for the Southern District of New York has approved a consent order resolving the Commodity Futures Trading Commission’s enforcement action against Alexander Mashinsky, the founder and former CEO of Celsius Network ¹.

The Consent Order

The order permanently bans Mashinsky from trading and registration with the CFTC ¹. It also prohibits him from committing further violations of specific anti-fraud provisions found within the Commodity Exchange Act and CFTC regulations ¹. The CFTC originally filed its complaint against both Celsius and Mashinsky in July 2023 ¹.

The complaint accused Mashinsky and Celsius of orchestrating a fraudulent scheme between 2018 and June 2022 ¹. According to the CFTC, they misrepresented the safety, profitability, and regulatory compliance of the firm's digital asset finance platform ¹. The regulator alleged that Mashinsky used videos, blog posts, livestreams, social media, and the company website to promote Celsius as a "safe" alternative to traditional banks ¹.

Simultaneously, the firm promised high-yield interest payments to depositors ¹. To generate these returns, Celsius allegedly employed increasingly risky investment strategies, including unregulated decentralized finance agreements and millions of dollars in uncollateralized loans ¹. The firm suffered severe losses and eventually filed for bankruptcy, having taken in roughly $20 billion in total value from customers ¹. The court previously entered a permanent injunction against Celsius in July 2023, leaving Mashinsky as the sole remaining defendant ¹.

Parallel Legal Actions

The resolution of the CFTC case follows criminal proceedings against Mashinsky for related conduct ¹. The U.S. Attorney’s Office for the Southern District of New York filed a parallel criminal action in July 2023 ¹. Mashinsky pleaded guilty in December 2024 to single counts of commodities fraud and securities fraud ¹. In May 2025, he received a 12-year prison sentence and was ordered to forfeit $48,393,446, alongside a $50,000 fine ¹.

CFTC Resolves Action Against Celsius Founder Alex Mashinsky With Lifetime Ban

Mashinsky also faced civil litigation from New York Attorney General Letitia James, who sued him for defrauding investors, including over 26,000 state residents, and concealing the firm's deteriorating financial health ². The lawsuit alleged Mashinsky failed to register as a salesperson for the firm and as a securities and commodities dealer ². Attorney General James sought to permanently bar him from the securities and commodities business in New York and secure damages, restitution, and disgorgement ².