CFTC Hands Ex-Celsius CEO Alex Mashinsky Permanent Ban From Commodity Markets

The U.S. Commodity Futures Trading Commission (CFTC) said it has finalized its enforcement case against Alex Mashinsky, the former chief executive of crypto lender Celsius, securing a permanent injunction that bars him from CFTC registration and from participating in any commodity-related activities under the agency's jurisdiction. In its announcement, the CFTC said the settlement was filed in the U.S. District Court for the Southern District of New York and approved by a judge on Thursday. The order does not add new monetary penalties, focusing instead on an industry ban at the regulatory level. Mashinsky has already pleaded guilty in a related criminal matter and was sentenced to 12 years in prison for fraud. He was also fined $50,000 and ordered to repay $48 million. The CFTC alleged Mashinsky and Celsius misled hundreds of thousands of customers through a fraudulent scheme, including claims about the platform's safety, profitability and compliance. Regulators said that as the crypto sector unraveled in 2022, Celsius continued to tell customers their assets were secure and earning sustainable returns despite mounting losses. Celsius later became one of the high-profile firms to fail during the 2022 cryptocurrency market crisis. With the settlement approved, the CFTC's regulatory case is largely closed, underscoring U.S. authorities' continued focus on holding crypto executives accountable for disclosure obligations.