CFTC ends Celsius fight with lifetime ban for Mashinsky

The U.S. Commodity Futures Trading Commission (CFTC) has settled its enforcement action against Celsius Network founder Alex Mashinsky. 

A federal court consent order permanently bans him from trading in markets overseen by the agency. It also bars him from registering with the CFTC.

The order ends the CFTC case filed in July 2023 against Mashinsky and Celsius. The agency said the action was its first case against a digital asset lending platform. Celsius had already settled with the regulator, leaving Mashinsky as the final defendant in the matter.

The ban covers commodities, futures, and derivatives markets under CFTC oversight. It gives the regulator a final court order against the former Celsius chief, who once promoted the company as a safer way for customers to earn yield on crypto deposits.

Regulator cites customer fraud claims

The CFTC said Mashinsky and Celsius misled customers about the safety, profits, and legal status of the company’s crypto lending business. The agency alleged that they ran a “scheme to defraud” hundreds of thousands of customers while promoting Celsius as a safe place for digital assets.

According to the regulator, Celsius pooled customer crypto and used the assets to seek returns for weekly interest payments. The CFTC alleged that the firm took growing risks, including uncollateralized loans and risky decentralized finance deals, while telling customers their assets were safe.

The regulator said Celsius received about $20 billion in funds during the period covered by the case. Celsius later filed for bankruptcy after heavy losses and a freeze on customer withdrawals. The collapse became one of the main crypto lending failures of 2022.

Other legal cases still matter

Mashinsky is already serving a 12-year prison sentence. In May 2025, a federal judge sentenced him after he pleaded guilty to commodities fraud and securities fraud. The court also ordered a $50,000 fine and forfeiture of more than $48 million tied to the criminal case.

The CFTC settlement follows an April 2026 Federal Trade Commission order that barred Mashinsky from promoting or offering services tied to deposits, exchanges, investments, or withdrawals of assets. That order included a $4.72 billion judgment, though most of it remains suspended if he meets payment and disclosure terms.

Celsius-related recoveries have also continued through the bankruptcy process. As crypto.news reported in August 2025, Celsius began a third creditor distribution worth $220.6 million, bringing recoveries to 64.9% of creditor claims.

SEC action remains open

Mashinsky still faces a civil case from the Securities and Exchange Commission. The SEC accused him and Celsius of unregistered securities offerings, false statements about the company, and manipulation of the Celsius token. The agency has also sought limits on his future activity in crypto asset securities.

The latest CFTC order closes one more part of the legal fallout from Celsius’s 2022 collapse, but it does not end every case tied to Mashinsky. He has asked a federal court to vacate his prison sentence. His filings blamed former FTX chief Sam Bankman-Fried for CEL token manipulation and claimed problems with his legal defense.

A court has ordered prosecutors to respond to that request by mid-August. Until then, the CFTC settlement stands as the permanent market ban against Mashinsky, adding to bars from crypto and asset-related services.