CFTC settles with former Celsius CEO Alexander Mashinsky, imposing a permanent trading ban as he serves a 12-year prison sentence.
Regulation & Gov ·
The Commodity Futures Trading Commission has resolved its 2023 enforcement action against Celsius founder Alex Mashinsky, permanently banning him from trading markets it regulates and imposing a permanent registration ban. Mashinsky is serving a 12-year prison sentence after pleading guilty to securities and commodities fraud tied to Celsius's lending collapse, which paused customer withdrawals and ultimately cost customers more than $5 billion. The CFTC settlement completes the regulator's first enforcement case against a digital asset lending platform.
The ban represents one of several regulatory actions against Mashinsky following Celsius's unraveling. The Federal Trade Commission earlier this year settled with him on civil charges, reducing a $4.7 billion judgment to $10 million and permanently barring him from working in the cryptocurrency ecosystem. Civil lawsuits from the SEC and FTC included allegations he stole approximately $42 million from customers.
In May, Mashinsky filed a handwritten motion to vacate his sentence, claiming ineffective counsel and a conflict of interest involving his legal firm's prior engagement with FTX co-founder Sam Bankman-Fried. Mashinsky alleges Bankman-Fried manipulated Celsius's token, though the specifics of his legal claim remain unresolved. It is unclear whether courts will consider his motion.