Celsius founder Alex Mashinsky has been permanently barred from trading in regulated markets by the U.S. Commodity Futures Trading Commission (CFTC). The ban, which is a result of the CFTC's first enforcement case against a digital asset lending platform operator, covers commodities, futures, and derivatives markets under CFTC oversight.
The CFTC alleged that Mashinsky and Celsius misled customers about the safety, profits, and legal status of their crypto lending business. The agency claimed that Celsius pooled customer crypto and used the assets to seek returns for weekly interest payments, taking growing risks while telling customers their assets were safe.
Mashinsky is already serving a 12-year prison sentence after pleading guilty to commodities fraud and securities fraud in May 2025. He also faces a civil case from the Securities and Exchange Commission (SEC), which accused him and Celsius of unregistered securities offerings, false statements about the company, and manipulation of the Celsius token.
The CFTC settlement follows an April 2026 Federal Trade Commission order that barred Mashinsky from promoting or offering services tied to deposits, exchanges, investments, or withdrawals of assets. The order included a $4.72 billion judgment, though most of it remains suspended if he meets payment and disclosure terms.