The founder of Celsius has been permanently banned from CFTC markets: the outcome of a years-long investigation
The Federal Court for the Southern District of New York has finally approved the settlement agreement between the U.S. Commodity Futures Trading Commission (CFTC) and Alexander Mashinsky, the founder of the bankrupt Celsius Network platform. According to the ruling, Mashinsky is permanently banned from trading on markets regulated by the CFTC and from registering as a participant with this regulator.
Details of the Claims and Scale of Damages
The CFTC's lawsuit against Celsius and its founder was initiated back in 2023. The regulator accused Mashinsky of systematically misleading clients regarding the actual security of assets and the profitability of the platform's products. This practice allowed the attraction of colossal funds — approximately $20 billion from retail investors. These actions led to the project's collapse and the loss of billions of dollars in client funds.
Criminal Prosecution and Final Verdict
It is worth noting that this CFTC decision complements the already imposed criminal sentence. In May 2025, Mashinsky was sentenced to 12 years in prison on charges of fraud related to the management of Celsius. Thus, the founder of the crypto lender faced dual punishment: both from the civil regulator and within the criminal process.
Analytical Commentary
This precedent is significant for the entire crypto industry. The lifetime trading ban for a top manager of this level demonstrates the determination of U.S. authorities to punish not only companies but also their leaders personally. This is a clear signal to the market: attempts to disguise high-risk schemes as safe investment products will no longer go unpunished.