CFTC Hits Celsius Crypto Fraudster Alex Mashinsky With Permanent Trading Ban

The Commodity Futures Trading Commission (CFTC) permanently banned Alex Mashinsky, the founder of the defunct cryptocurrency lending platform Celsius Network, from trading in CFTC-regulated markets and from registering with the regulator on May 22, 2024. This action follows Mashinsky's conviction in January 2024 on charges of defrauding Celsius customers. The settlement with the CFTC prohibits Mashinsky from engaging in any commodity derivatives transactions and from acting as a principal, agent, or in any other capacity in connection with any registered entity. The CFTC's order also requires Mashinsky to pay disgorgement of $1.2 billion, which is to be offset by any restitution he pays to victims in his criminal case. Mashinsky was found guilty of defrauding investors out of more than $1.7 billion in digital assets by making false and misleading statements about Celsius's business operations and financial health. The CFTC's lawsuit, filed in July 2023, alleged that Mashinsky manipulated the price of Celsius's native token, CEL, and used customer assets for unauthorized purposes, including to cover operational expenses and to invest in Bitcoin. The settlement aims to prevent further harm to consumers and market integrity by permanently barring Mashinsky from participating in regulated financial markets.