Alexander Mashinsky, founder of the collapsed crypto lender Celsius, has now been formally banned from registering with the U.S. Commodity Futures Trading Commission (CFTC), following his earlier prison sentence for fraud.
The former Celsius CEO, whose company failed in a high-profile collapse, is now permanently barred from conducting any business with the CFTC or participating in the commodities markets it regulates.
The derivatives regulator did not impose any additional financial penalties. Mashinsky had already pleaded guilty to misleading investors about the financial condition of Celsius as it deteriorated. The latest ruling adds a registration and trading ban on top of his existing punishment, which includes a 12-year prison term, a $50,000 fine, and an order to pay $48 million in restitution.
The CFTC order permanently restricts him from any commodities-related activity and has been formally entered into the U.S. District Court for the Southern District of New York, where it was approved by a judge.
In its statement, the CFTC said Mashinsky and Celsius “engaged in a scheme to defraud hundreds of thousands of customers” by misrepresenting the safety, profitability, and regulatory compliance of their crypto lending platform. Even during the 2022 market crash, Celsius continued assuring users their funds were safe while the firm was suffering major losses.
Celsius was one of several major crypto companies that collapsed in rapid succession during that period, contributing to a broader industry downturn.
