The U.S. Commodity Futures Trading Commission (CFTC) has formally closed its civil enforcement action against Celsius founder and former CEO Alex Mashinsky, securing a permanent ban that bars him from participating in U.S. commodity markets.
According to the official release, under a consent order entered by the U.S. District Court for the Southern District of New York, Mashinsky consented to permanent injunctive relief and agreed to resolve the CFTC’s civil action. In exchange, the CFTC agreed to dismiss the remaining counts in its 2023 lawsuit with prejudice, bringing the agency’s civil case to an end.
CFTC secures permanent market ban
The consent order permanently prohibits Mashinsky from trading commodity interests or participating in CFTC-regulated markets. He is also barred from registering with the CFTC or serving as a principal, officer, employee, or agent of any CFTC-registered entity, subject to limited regulatory exceptions.
In addition, the court permanently enjoined Mashinsky from engaging in fraudulent or deceptive conduct involving commodities transactions, including making false or misleading statements or omitting material facts.
Unlike the parallel criminal proceedings, the consent order does not impose any additional civil monetary penalties or restitution. Instead, it focuses on injunctive and equitable relief.
Settlement closes the regulator’s remaining case
The CFTC originally sued Celsius and Mashinsky in July 2023, alleging they misled hundreds of thousands of customers about the safety, profitability, and regulatory compliance of the crypto lending platform.
According to the complaint, Celsius portrayed itself as a safe alternative to traditional banks while promising high yields on customer deposits. Behind the scenes, the company allegedly relied on increasingly risky investment strategies, including uncollateralized loans and decentralized finance transactions, before eventually collapsing into bankruptcy.
The regulator said Celsius handled approximately $20 billion in customer assets before the platform failed. A separate consent order against Celsius itself was entered in July 2023, leaving Mashinsky as the remaining defendant until this week’s settlement.
The civil settlement comes after Mashinsky’s criminal case concluded last year. In December 2024, he pleaded guilty to one count each of commodities fraud and securities fraud stemming from the same conduct underlying the CFTC’s lawsuit. In May 2025, he was sentenced to 12 years in prison and ordered to forfeit approximately $48.4 million, along with paying a $50,000 fine.
FTC settlement adds to Mashinsky’s legal fallout
Mashinsky’s legal troubles also extended beyond the CFTC case. In April 2026, a federal judge in Manhattan approved a settlement with the Federal Trade Commission (FTC), ordering the former Celsius CEO to pay $10 million to resolve civil fraud allegations.
As part of the agreement, the court suspended a previously entered $4.72 billion judgment against Mashinsky, citing his cooperation with authorities. The order also permanently bars him from promoting, marketing, or operating products involving crypto or digital asset services, effectively preventing him from returning to the industry. The settlement allows Mashinsky’s criminal forfeiture payment to satisfy the FTC obligation if it meets the required threshold, bringing another major civil case stemming from Celsius’ collapse to a close.
With the latest consent order, the CFTC has formally concluded its enforcement action. The combination of Mashinsky’s criminal conviction, prison sentence, and lifetime prohibition from CFTC-regulated markets effectively ends his ability to operate within the U.S. commodities industry.
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