The Commodity Futures Trading Commission (CFTC) has closed the book on Celsius. A federal court has entered a consent order resolving the agency’s 2023 case against the founder, Alexander Mashinsky.
The order, entered in the Southern District of New York, permanently bars Mashinsky from trading in CFTC-regulated markets and from registering with the agency in any capacity.
What the CFTC Case Against Celsius Covered
This brings closure to CFTC’s enforcement action. Mashinsky is also barred from violating the anti-fraud provisions of the CEA and the agency’s rules.
“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,” the CFTC said.
The CFTC sued Celsius and Mashinsky in July 2023. Regulators accused the pair of defrauding hundreds of thousands of customers.
“The complaint alleged Celsius was an online platform on which Celsius’ customers would allow Celsius to pool their digital assets and deploy these pooled assets to generate revenue for Celsius, which purportedly would be returned to the customers in the form of weekly interest payments or ‘rewards,” the press release read.
The complaint covered conduct from 2018 through at least June 2022. According to it, Mashinsky marketed Celsius as a safe, bank-like alternative for digital assets.
He promised high-yield interest payments while the platform took on growing risk. Celsius reportedly extended uncollateralized loans and entered risky Decentralized Finance (DeFi) agreements.
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Bankruptcy, Criminal Charges, and Sentencing
Celsius told users their funds were safe even as losses mounted. The platform later filed for bankruptcy. Celsius’ ultimate collapse episode joined a wave of high-profile cases across the sector.
Mashinsky pleaded guilty to commodities and securities fraud in December 2024. A judge sentenced Mashinsky to 12 years in prison in May 2025. The court also ordered a $50,000 fine and $48.39 million in forfeiture.
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