Celsius Founder Alex Mashinsky Hit with CFTC Ban in Final Enforcement Agreement

Alexander Mashinsky, founder of the collapsed crypto lender Celsius, has been formally banned from registering with the U.S. Commodity Futures Trading Commission (CFTC) following his prior conviction and prison sentence for fraud.

The former Celsius CEO, whose company failed in a widely publicized collapse, is now permanently prohibited from doing business with the CFTC or participating in any commodities markets under its jurisdiction.

The derivatives regulator did not impose any additional monetary penalties. Mashinsky had already admitted to misleading investors about Celsius’s financial health as the platform unraveled. The new order adds a permanent registration and trading ban to his existing punishment, which includes a 12-year prison sentence, a $50,000 fine, and an order to forfeit $48 million.

Court filings show the CFTC order permanently restrains and bars him from all commodities-related activity, and it has been entered into the U.S. District Court for the Southern District of New York with judicial approval.

The CFTC stated that Mashinsky and Celsius “engaged in a scheme to defraud hundreds of thousands of customers” by misrepresenting the safety, profitability, and regulatory compliance of their platform. Even during the 2022 crypto market downturn, Celsius continued assuring users their funds were safe while suffering heavy losses.

Celsius was one of several major crypto firms that collapsed in rapid succession during that period, contributing to a broader market meltdown.