The US Commodity Futures Trading Commission (CFTC) has reached a settlement with Alex Mashinsky, founder of Celsius Network, resulting in a permanent ban on his ability to trade in regulated markets. This resolution, announced on June 19, 2026, concludes the CFTC's initial enforcement action against a cryptocurrency lending platform, which began in 2023.
According to the CFTC, Mashinsky and Celsius misled numerous customers about the safety and profitability of their digital asset finance platform, ultimately defrauding them. This settlement prohibits Mashinsky from registering with the CFTC and ensures he cannot trade US commodities, futures, or derivatives in the future.
Mashinsky previously received a 12-year prison sentence in May 2025 after admitting to securities and commodities fraud linked to Celsius’ operations, which collapsed amid a significant market downturn in 2022. The CFTC claims Celsius managed approximately $20 billion in funds, making high-risk investments to fulfill promised returns. Additionally, Mashinsky faces ongoing charges from the SEC regarding unregistered securities offerings and other allegations related to Celsius' business conduct.