Celsius founder Mashinsky receives permanent trading ban in CFTC settlement

The U.S. Commodity Futures Trading Commission (CFTC) has resolved its enforcement action against Celsius Network founder Alex Mashinsky, permanently banning him from trading in markets overseen by the commodities regulator. The CFTC said Thursday that a court consent order also prevents Mashinsky from ever registering with the regulator and ends the enforcement action it first filed in 2023.

Permanent trading ban and registration prohibition

Under the order, Mashinsky will never be able to trade U.S. commodities, futures, and derivatives. The CFTC said the settlement also bars him from registering with the regulator, concluding the enforcement case.

Alleged scheme involving Celsius customers

The CFTC said Mashinsky and Celsius carried out a scheme to defraud hundreds of thousands of customers. The regulator alleged that the scheme involved misrepresenting the safety, profitability, and regulatory compliance of Celsius’s digital asset-based finance platform.

Regulatory context for cryptocurrencies

The CFTC’s latest order follows earlier guidance from the CFTC and the U.S. Securities and Exchange Commission (SEC) earlier this year. That guidance stated the regulators considered most major cryptocurrencies to be commodities.

Case closure and prior criminal outcome

The settlement also ends the CFTC’s first case against a digital asset lending platform and marks the conclusion of one of the last remaining regulatory actions pending against Mashinsky.

Mashinsky was sentenced to 12 years in prison in May 2025 after pleading guilty to securities and commodities fraud. The CFTC said the fraud involved misleading Celsius customers about the safety of the crypto lending platform, which collapsed during a major market drawdown in 2022.

Funds and investment allegations

In its allegations, the CFTC said Celsius received about $20 billion in funds and made risky investments to meet the returns it promised.