The founder of Celsius has permanently lost the right to trade on U.S. markets: CFTC ruling
The U.S. District Court for the Southern District of New York has officially approved the settlement agreement between the Commodity Futures Trading Commission (CFTC) and Alexander Mashinsky, the founder of the bankrupt platform Celsius Network. Under this ruling, he has been issued a lifetime ban from any operations in markets under CFTC jurisdiction, as well as from registering with this regulator. This effectively ends his career in the U.S. legal financial sector.
Lawsuit and $20 Billion Financial Fraud
To recall, the CFTC filed a lawsuit against Celsius and Mashinsky personally back in 2023. The regulator accused them of systematically misleading clients regarding the actual safety of assets and promised returns. According to the investigation, approximately $20 billion was raised from retail investors through this platform. Essentially, clients were promised "risk-free" returns, while the funds were used in highly risky operations.
Criminal Sentence Already Handed Down
It is important to note that this civil case is only part of the consequences for Mashinsky. In May 2025, he was already sentenced to 12 years in prison in a criminal fraud case. The lifetime ban from the CFTC only completes the picture, depriving him of any opportunity to ever return to the industry as a trader or manager.
My analysis: This ruling is a clear signal to the market: regulators are not just punishing past mistakes but are seeking to completely isolate dishonest players. A lifetime ban on CFTC registration is one of the harshest tools, ensuring that such figures can never again legally manage other people's funds in the U.S. For the entire industry, this is a precedent that raises compliance and transparency standards.