CFTC Wins Permanent U.S. Commodities-Market Ban Against Celsius Founder Alex Mashinsky

The U.S. Commodity Futures Trading Commission (CFTC) has secured a final court order against Alex Mashinsky, the founder and former CEO of Celsius, closing the agency's civil enforcement case tied to the crypto lender's collapse. Under a consent order entered by the U.S. District Court for the Southern District of New York, Mashinsky is permanently enjoined from violating certain antifraud provisions of the Commodity Exchange Act and is permanently barred from trading in, or registering for activities in, U.S.-regulated commodity markets. The order also prohibits him from serving as a director, employee, officer, or agent of any CFTC-registered entity and covers related eligibility restrictions. The CFTC said the injunction resolves its remaining outstanding claims against Mashinsky. The matter traces back to Celsius's failure. In July 2023, the regulator sued, alleging Mashinsky misled customers about the platform's security, profitability, and regulatory standing. The complaint alleged Celsius pooled customer crypto and pursued increasingly risky strategies while continuing to assure users their funds were safe. The CFTC said Celsius ultimately took in about $20 billion in customer assets before filing for bankruptcy. Mashinsky's parallel criminal case has already been decided. He pleaded guilty in December 2024 to one count of commodities fraud and one count of securities fraud. In May 2025, a court sentenced him to 12 years in prison, imposed a $50,000 fine, and ordered the forfeiture of roughly $48.4 million. With the civil case now concluded, a key piece of regulatory accountability tied to Celsius's collapse has been finalized.