CFTC Hits Celsius Crypto Fraudster Alex Mashinsky With Permanent Trading Ban
The CFTC resolved its 2023 enforcement case against Celsius founder and former CEO Alex Mashinsky with a consent order permanently banning him from trading in CFTC-regulated markets and from CFTC registration. This closes the regulator’s first case against a digital asset lending platform. Mashinsky was later sentenced to 12 years in prison after pleading guilty to securities and commodities fraud tied to Celsius’s collapse, which froze withdrawals and left customers unable to access billions in deposits. Celsius then filed for bankruptcy, and customers ultimately lost more than $5 billion. He also faced SEC and FTC civil actions; the FTC settlement reduced a $4.7 billion judgment to $10 million and permanently barred him from the crypto industry. Mashinsky has since sought to vacate his sentence, arguing ineffective counsel and blaming FTX founder Sam Bankman-Fried for manipulating Celsius token trading.
