Celsius’ Mashinsky gets permanent trading ban in CFTC settlement

The U.S. Commodity Futures Trading Commission (CFTC) settled with Alex Mashinsky, the founder of the now-bankrupt cryptocurrency lending platform Celsius Network, on May 23, 2024. This settlement resolves the CFTC's first enforcement action against a crypto lending platform. As part of the agreement, Mashinsky is permanently banned from trading in any commodity, including crypto assets, and is prohibited from acting as a principal or introducing broker in the commodities market. The CFTC had accused Mashinsky of defrauding customers and manipulating the price of Celsius's native token, CEL. The settlement also requires Mashinsky to pay a $1.2 million civil monetary penalty. This action follows a previous settlement in July 2023 where Mashinsky agreed to pay $4.5 million to the U.S. Securities and Exchange Commission (SEC) to resolve charges of defrauding investors. The SEC's complaint alleged that Mashinsky misled investors about Celsius's financial health and the risks associated with its crypto lending products. Celsius Network filed for bankruptcy protection in July 2022, listing billions in liabilities.