CFTC Consent Order Permanently Bans Celsius Founder Alex Mashinsky From Trading, Closes Civil Case

The Commodity Futures Trading Commission said Thursday that a federal court in New York has entered a consent order against Alexander “Alex” Mashinsky, the founder and former CEO of Celsius Network, resolving the agency’s remaining civil case against him and permanently barring him from future anti-fraud violations, trading and registration. The CFTC, which regulates U.S. derivatives markets, said the order was entered by the U.S. District Court for the Southern District of New York.

The order was filed June 12 and announced by the CFTC on June 18. According to the agency, it “permanently enjoins Mashinsky from further violations of certain anti-fraud provisions in the CEA and CFTC regulations and imposes permanent trading and registration bans against him.” The consent order also says Mashinsky admitted violating Section 6(c)(1) of the Commodity Exchange Act and CFTC Regulation 180.1(a)(1)-(3), the anti-fraud count in the case. He also consented to the dismissal with prejudice of Counts II, III and IV of the CFTC’s complaint.

The CFTC sued Celsius Network, LLC and Mashinsky on July 13, 2023, in federal court in Manhattan. In that complaint, the agency alleged that from 2018 through at least June 2022, Mashinsky and Celsius defrauded hundreds of thousands of customers by misrepresenting the crypto platform’s safety, profitability and regulatory compliance. According to the complaint, Celsius operated an online platform that pooled customer digital assets and promised weekly interest or rewards, taking in deposits totaling about $20 billion.

Celsius was one of the most prominent crypto lenders during the sector’s boom. The company froze customer withdrawals on June 12, 2022, and later filed for Chapter 11 bankruptcy protection on July 13, 2022. The CFTC’s case focused on allegations that the company continued to mislead customers about the strength of the business before its collapse.

Thursday’s announcement closes out the CFTC’s civil case against Mashinsky after the court had already entered a separate consent order against Celsius Network, LLC on July 17, 2023. It also comes after Mashinsky’s criminal case in the same district. Federal prosecutors charged him on July 11, 2023. He pleaded guilty on Dec. 3, 2024, to one count of commodities fraud and one count of securities fraud. On May 8, 2025, he was sentenced to 12 years in federal prison, ordered to pay a $50,000 fine and directed to forfeit $48,393,446.