CFTC Permanently Bans Celsius Founder Alex Mashinsky from Regulated Markets

The US Commodity Futures Trading Commission (CFTC) has secured a permanent ban against Celsius founder Alex Mashinsky from trading in regulated markets and registering with the agency. This decision comes after a series of actions against Mashinsky, including a 12-year prison sentence and a $48 million restitution order.

The CFTC's July 2023 lawsuit alleged that Mashinsky and Celsius misled hundreds of thousands of customers about the safety and profitability of their platform. The complaint stated that Celsius pooled customer crypto and deployed it into increasingly risky strategies while assuring users that their funds were safe and earning yield.

Mashinsky was also sentenced to a $10 million settlement with the Federal Trade Commission, reduced from an initial $4.7 billion judgment, alongside a lifetime ban from the cryptocurrency industry.