Alex Mashinsky, the founder and former CEO of bankrupt crypto lending giant Celsius Network, has been permanently banned from trading in regulated U.S. commodity markets after a federal court approved a settlement with the Commodity Futures Trading Commission.
The June 18 consent order the CFTC's lawsuit against Mashinsky by permanently barring him from violating certain anti-fraud rules and imposing lifetime trading and registration bans.
The case centered on claims that Celsius Network marketed itself as a safe place to earn yield on crypto deposits while taking risks that customers did not fully understand.
- According to the CFTC, Mashinsky spent years promoting Celsius Network as a "safe" alternative to traditional banking while promising high returns on deposited crypto.
- Regulators alleged that behind the scenes, Celsius Network relied on increasingly risky strategies, including uncollateralized lending and decentralized finance positions, to generate those returns.
The settlement closes a civil enforcement action that began in July 2023, shortly after Celsius Network collapsed and entered bankruptcy.
Mashinsky had already admitted criminal wrongdoing in a parallel case.
- In December 2024, he pleaded guilty to commodities fraud and securities fraud charges.
- In May 2025, he was sentenced to 12 years in prison, ordered to forfeit more than $48.3 million and pay a $50,000 fine.
The new order means Mashinsky will also be permanently excluded from participating in regulated commodity trading markets.
- Founded in 2017 by Alex Mashinsky and Daniel Leon, Celsius Network grew into one of crypto's largest lending platforms during the bull market by offering customers high yields on deposited crypto.
- The company froze withdrawals in June 2022 and filed for bankruptcy a month later, becoming one of the highest-profile failures of the crypto credit crisis.