U.S derivatives regulators permanently banned the founder and former CEO of crypto firm, Celsius Network LLC, who’s already been convicted on fraud charges.
The U.S. district court for the Southern District of New York (SDNY) entered a consent order on Thursday that resolves the U.S. Commodity Futures Trading Commission’s (CFTC) enforcement action against the former head of Celsius, Alexander Mashinsky.
That action, which was filed back in 2023, alleged that, starting in 2018, Mashinsky and Celsius defrauded investors by misrepresenting the safety and profitability of the firm’s crypto platform, which pooled their digital assets and promised to pay interest, or rewards, on those holdings.
The CFTC alleged that while the firm publicly touted itself as a “safe” alternative to traditional banks, it was actually engaging in increasingly risky activities — including making large, uncollateralized loans and entering risky, unregulated decentralized finance arrangements — in order to generate the promised returns for its clients.
Ultimately, the firm suffered crippling losses, and it filed for bankruptcy.
In December 2024, Mashinsky, who faced parallel criminal charges, pleaded guilty to one count of commodities fraud and one count of securities fraud — and, in May 2025, he was sentenced to 12 years in prison and ordered to pay US$48.4 million in forfeiture.
The CFTC imposed a permanent injunction against Celsius in 2023, and it has now resolved its case against Mashinsky, imposing permanent trading and registration bans against him.