Former Celsius CEO Alex Mashinsky has been permanently banned from trading in CFTC-regulated markets by a federal court. The consent order resolves the regulator’s 2023 civil case against him, which alleged he misled customers about the platform’s safety. This follows his May 2025 sentencing to 12 years in prison and a $50,000 fine for fraud.
A federal court has permanently banned Celsius founder Alexander Mashinsky from trading in markets overseen by the CFTC. The order also prohibits him from violating anti-fraud provisions of the Commodity Exchange Act and bars future registration with the agency.
The regulator had sued Mashinsky and Celsius Network in July 2023. It alleged the company and its founder misled hundreds of thousands of customers about the platform’s safety and profitability between 2018 and 2022.
According to the complaint, Mashinsky promoted Celsius as a safe alternative to traditional banking. He reportedly made these claims through public videos, livestreams, blog posts, and social media content.
The CFTC claimed Celsius used risky investment strategies to generate promised returns. These included making millions in uncollateralized loans and participating in risky decentralized finance agreements.
The company ultimately filed for bankruptcy after suffering major losses. Celsius had received approximately $20 billion in customer funds during its operations.
Mashinsky later pleaded guilty in a related criminal case on December 3, 2024. He admitted to one count of commodities fraud and one count of securities fraud.
He was sentenced on May 8, 2025, to 12 years in prison. The court also ordered him to pay a $50,000 fine and forfeit $48.39 million.
