Why did regulators ban Celsius Network founder Alexander Mashinsky from trading?

Regulators alleged Alexander Mashinsky, founder of Celsius Network, misled customers about the safety, profitability, and regulatory status of the platform. The CFTC said Celsius attracted about US$20 billion in customer funds between 2018 and 2022 through those representations.

What does the CFTC order against Celsius Network founder Alexander Mashinsky do?

The CFTC order permanently bans Celsius Network founder Alexander Mashinsky from trading in regulated markets and from registering with the agency. The order also prohibits future violations of certain anti-fraud provisions under U.S. commodities laws.

How did Celsius Network generate returns for customers?

Celsius Network pooled customer digital assets and used them in lending and investment activities to generate revenue. Regulators alleged the company used increasingly risky strategies, including uncollateralised loans and decentralised finance agreements, while continuing to market the platform as safe.

What other legal actions were taken against Celsius Network and Alexander Mashinsky?

Celsius Network and Alexander Mashinsky faced separate actions from the SEC, FTC, and U.S. Department of Justice. Those cases included allegations involving fraud, misleading statements, unregistered securities activity, and manipulation of the CEL token.

What happened to Celsius Network customers after the company collapsed?

Prosecutors said Celsius Network held about US$25 billion in assets at its peak in 2021 before halting withdrawals on June 12, 2022. Authorities said customers were left with approximately US$4.7 billion in inaccessible assets when the platform froze withdrawals and later entered bankruptcy.

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Celsius founder receives permanent trading ban

Written by Mahathir BayenaPublished Jun 19, 2026, 3:32 AM

Federal regulators secured permanent trading and registration bans against Celsius founder Alexander Mashinsky following a consent order entered by a New York court.
The CFTC alleged Celsius attracted about US$20 billion in customer funds through misleading claims about safety, profitability, and regulatory compliance.
The case adds to enforcement actions by the SEC, FTC, and Department of Justice following Celsius' collapse and bankruptcy.

The Commodity Futures Trading Commission secured permanent trading and registration bans against Celsius Network founder Alexander Mashinsky after a federal court approved a consent order resolving the agency’s civil enforcement action.

The order was entered nearly three years after Celsius Network filed for bankruptcy, with regulators alleging the company attracted approximately US$20 billion in customer funds through its digital asset lending platform.

“The consent order permanently enjoins Mashinsky from further violations of certain anti-fraud provisions in the CEA and CFTC regulations and imposes permanent trading and registration bans against him,” said the Commodity Futures Trading Commission.

The CFTC alleged that between 2018 and June 2022, Mashinsky and Celsius misled hundreds of thousands of customers about the platform’s safety, profitability, and regulatory compliance while promoting high-yield returns on deposited digital assets.

Regulators alleged Celsius used increasingly risky investment strategies, including uncollateralised loans and decentralised finance agreements, and following the court order the privately held company no longer operates following its bankruptcy proceedings.

The enforcement action follows separate cases brought by the Securities and Exchange Commission, the Federal Trade Commission, and the U.S. Department of Justice, which alleged fraud, misleading statements, and manipulation involving the CEL token and Celsius operations.

Mashinsky pleaded guilty in December 2024 to commodities fraud and securities fraud and was sentenced in May 2025 to 12 years in prison, while prosecutors said Celsius held approximately US$25 billion in assets at its peak and left customers with US$4.7 billion in inaccessible assets when withdrawals were halted in June 2022.