CFTC Hits Celsius Crypto Fraudster Alex Mashinsky With Permanent Trading Ban
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The Commodity Futures Trading Commission (CFTC) has resolved its 2023 enforcement action against Celsius founder Alex Mashinsky, permanently banning him from trading markets regulated by the CFTC.
Key facts
- Earlier this year, the Federal Trade Commission and Mashinsky reached a settlement which brought an initial $4.7 billion judgment down to $10 million, though it can be lifted if the regulator finds
- In May, over a year after his sentencing, Mashinsky filed a handwritten motion to vacate his 12-year prison sentence, citing ineffective counsel and a conflict of interest due to his legal firm’s
- Alongside criminal charges because of his actions, Mashinsky faced civil lawsuits from the SEC and FTC, in addition to the CFTC, some of which alleged he stole around $42 million from customers
- The Commodity Futures Trading Commission (CFTC) has resolved its 2023 enforcement action against Celsius founder Alex Mashinsky, permanently banning him from trading markets regulated by the CFTC
Summary
Celsius founder Alex Mashinsky was banned from trading markets regulated by the CFTC. Mashinsky was imprisoned for 12 years after pleading guilty to counts of securities and commodities fraud. Earlier this year, the FTC permanently banned him from working in the cryptocurrency ecosystem again. The consent order also imposes a permanent CFTC registration ban on the former crypto founder, and marks the completion of the regulator’s first case against a digital asset lending platform, according to its 2023 press release.