The US Commodity Futures Trading Commission (CFTC) has permanently barred former Celsius Network chief executive Alexander Mashinsky from trading in regulated markets and from registering with the agency, closing its civil enforcement case against him.
CFTC Permanently Bars Celsius Founder Mashinsky From Regulated Markets
19 June 2026 - 14:00 CEST
By Sandmark staff
A federal court in New York entered the order this week, resolving a lawsuit the CFTC filed in 2023. The regulator accused Mashinsky of misleading customers about the safety and financial health of Celsius in the lead-up to the crypto lender’s collapse. The civil resolution follows Mashinsky’s criminal conviction and 12-year prison sentence.
Misleading customers while taking hidden risks
According to the CFTC, Mashinsky and Celsius promoted the platform as a secure alternative to traditional banking while offering high yields on customer deposits. In reality, the agency alleged, the company pursued increasingly risky strategies to generate those returns, including large uncollateralized loans and heavy exposure to high-risk decentralized finance activities.
Regulators said Celsius continued to assure customers that their assets were safe even as the firm incurred substantial losses. Celsius ultimately filed for bankruptcy after taking in roughly $20bn in customer funds.
Follows criminal conviction
Mashinsky pleaded guilty in December 2024 to commodities and securities fraud charges. In May 2025, he was sentenced to 12 years in prison and ordered to pay a fine and forfeit more than $48mn.
The CFTC’s civil order permanently bars Mashinsky from participating in CFTC-regulated markets and from registering with the agency in any capacity. It marks the formal end of the regulator’s enforcement action against the former Celsius chief executive.
