Ex-Celsius CEO Mashinsky gets U.S. CFTC ban in final resolution with regulator

Ex-Celsius CEO Mashinsky gets U.S. CFTC ban in final resolution with regulator

Policy

Ex-Celsius CEO Mashinsky gets U.S. CFTC ban in final resolution with regulator

Alexander Mashinsky, the founder of failed crypto lender Celsius, had earlier been imprisoned for fraud and is now formally banned from CFTC registration.

By

Jesse Hamilton

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Edited by

Nikhilesh De

Jun 18, 2026, 7:26 p.m.

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Alex Mashinsky, the imprisoned former CEO of Celsius, is now banned from commodities activity. (CoinDesk)

Summary

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The disgraced former founder and CEO of a major crypto firm, Celsius' Alexander Mashinsky, has been formally banned from commodities activity as the Commodity Futures Trading Commission wrapped up the years-long case.

Mashinsky had already been sentenced to 12 years in prison in connection with his fraud convictions.

The punishments of Alexander Mashinsky, the imprisoned former chief of

Celsius

until its high-profile collapse, continue with

a formal banishment

from any ability to seek business with the U.S. Commodity Futures Trading Commission or the trading it oversees.

The derivatives regulator didn't pile any new fines onto Mashinsky, who previously pleaded guilty to accusations he misled the public about the health of his failing crypto firm as it was imploding, but the agency added an expected registration and trading ban, according to a Thursday statement. That's a minor addition to the 12-year prison sentence

imposed in his criminal case

, in which he pleaded guilty to fraud, was hit with a $50,000 fine and ordered to return $48 million.

The CFTC's arrangement, which “permanently restrained, enjoined and prohibited” him from any commodities activity, has been recorded in U.S. District Court for the Southern District of New York, according to the filing, and was approved by a judge on Thursday, the court docket shows.

"Mashinsky and Celsius engaged in a scheme to defraud hundreds of thousands of customers by misrepresenting the safety, profitability, and regulatory compliance of Celsius’ digital asset-based finance platform," the CFTC said in a statement. In the widespread collapse of the crypto industry in 2022, "while continuing to tell its customers their assets were safe and earning rewards, Celsius suffered devastating losses."

Celsius was among the prominent firms collapsing within close proximity of each other, amplifying the destruction of that period.

Read More:

Celsius Founder Alex Mashinsky Sentenced to 12 Years in Prison for Fraud

Fraud

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In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.

By

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In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.

Why it matters

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In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high.

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