The Commodity Futures Trading Commission has closed its legal battle with Celsius Network’s former CEO. A consent order from a federal court now permanently prohibits Alex Mashinsky from participating in markets under the agency’s oversight. He is also barred from registering with the CFTC in any capacity.
This settlement concludes the regulator’s case filed in mid-2023 against both Mashinsky and his company. Celsius had already reached a separate agreement with the agency, leaving Mashinsky as the sole remaining defendant. The ban applies to commodities, futures, and derivatives trading, effectively ending his involvement in regulated markets.
According to the CFTC, Mashinsky and Celsius misled clients regarding the security, profitability, and regulatory standing of their crypto lending operations. The agency described a scheme that deceived hundreds of thousands of customers while portraying Celsius as a trustworthy platform for digital assets. The firm pooled user funds and deployed them in increasingly risky strategies, including uncollateralized loans and complex DeFi ventures, all while promising safety and steady returns.
During the relevant period, Celsius attracted approximately $20 billion in customer deposits. The company collapsed after suffering heavy losses and freezing withdrawals, becoming a hallmark case of the 2022 crypto lending crisis. Mashinsky is currently serving a 12-year prison sentence after pleading guilty to commodities and securities fraud. A separate court ordered him to pay a $50,000 fine and forfeit over $48 million.
The CFTC settlement follows an earlier Federal Trade Commission order from April 2026 that banned Mashinsky from promoting or managing asset services. That order carried a $4.72 billion judgment, though most of it is suspended if he complies with payment and disclosure terms. Meanwhile, the Celsius bankruptcy process has continued, with a third distribution of $220.6 million to creditors beginning in August 2025, bringing total recoveries to 64.9% of claims.
Mashinsky still faces a civil lawsuit from the Securities and Exchange Commission, which accuses him of unregistered securities offerings and false statements. He has also filed a motion to vacate his prison sentence, arguing that former FTX CEO Sam Bankman-Fried manipulated the CEL token and that his legal defense was flawed. A court has given prosecutors until mid-August to respond. For now, the CFTC’s permanent trading ban adds to the mounting legal restrictions on the former executive.