{"id":9995,"date":"2026-06-19T07:40:21","date_gmt":"2026-06-19T07:40:21","guid":{"rendered":"https:\/\/cryptonews.uk.com\/?p=9995"},"modified":"2026-06-19T07:40:21","modified_gmt":"2026-06-19T07:40:21","slug":"cftc-permanently-bans-celsius-founder-alex-mashinsky-closing-landmark-crypto-lending-case","status":"publish","type":"post","link":"https:\/\/cryptonews.uk.com\/?p=9995","title":{"rendered":"CFTC Permanently Bans Celsius Founder Alex Mashinsky, Closing Landmark Crypto Lending Case"},"content":{"rendered":"

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  • The CFTC won a permanent ban barring Alex Mashinsky from trading in regulated markets and registering with the agency, entered as a consent order in a New York federal court on June 18.<\/span><\/li>\n
  • The action carried no new financial penalty, resolving the regulator\u2019s July 2023 lawsuit accusing Mashinsky and Celsius of misleading customers about the platform\u2019s safety and profitability.<\/span><\/li>\n
  • It follows a 12-year prison sentence, about US$48 million in criminal restitution, and a separate US$10 million\u00a0 FTC settlement.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n

    The Commodity Futures Trading Commission has secured a permanent trading and registration ban against Celsius founder Alex Mashinsky, closing its civil enforcement action over the crypto lender\u2019s collapse that left customers facing more than US$5 billion (AU$7.1 billion) in losses.<\/p>\n

    The US District Court for the Southern District of New York entered the consent order on June 18, permanently barring Mashinsky from trading in CFTC-regulated markets, from registering with the agency, and from violating anti-fraud provisions of the Commodity Exchange Act.\u00a0<\/p>\n

    The order imposed no new monetary penalty, marking the regulator\u2019s final resolution of the matter.<\/p>\n

    Read more: Strategy Buys Another $100M in Bitcoin as BTC Trades Below Cost Basis<\/strong><\/p>\n

    The Case the Order Closes<\/h2>\n

    The settlement resolves the CFTC\u2019s July 2023 lawsuit, which alleged that Mashinsky and Celsius misled hundreds of thousands of customers about the safety, profitability and regulatory status of the platform. According to the complaint, Celsius pooled customer crypto and deployed it into increasingly risky strategies while continuing to assure users their funds were safe and earning yield.<\/p>\n

    The CFTC stated that \u201cMashinsky and Celsius engaged in a scheme to defraud hundreds of thousands of customers by misrepresenting the safety, profitability, and regulatory compliance\u201d of the platform.\u00a0<\/p>\n

    Celsius paused withdrawals and filed for bankruptcy in 2022 during the broader crypto downturn, freezing customer access to funds as the company\u2019s losses mounted. The case has been described as the agency\u2019s first enforcement action against a digital asset lending platform, a characterisation that underscored how unsettled the rules were when Celsius operated.<\/p>\n

    The CFTC order is the last in a series of actions against the former executive. Mashinsky was sentenced in May 2025 to 12 years in prison after pleading guilty to one count of commodities fraud and one count of securities fraud, with the criminal case also imposing a US$50,000 (AU$71,000) fine and roughly US$48 million (AU$68.2 million) in restitution.<\/p>\n

    He separately reached a US$10 million (AU$14.2 million) settlement with the Federal Trade Commission, reduced from an initial US$4.7 billion (AU$6.67 billion) judgment, alongside a lifetime ban from the cryptocurrency industry.\u00a0<\/p>\n

    Read more: NSW South Coast Man Granted Bail Over Alleged $5.7m Dark Web Bitcoin Haul<\/strong><\/p>\n<\/p><\/div>\n

    Celsius,CFTC#CFTC #Permanently #Bans #Celsius #Founder #Alex #Mashinsky #Closing #Landmark #Crypto #Lending #Case1781854821<\/p>\n","protected":false},"excerpt":{"rendered":"

    The CFTC won a permanent ban barring Alex Mashinsky from trading in regulated markets and registering with the agency, entered as a consent order in a New York federal court on June 18. The action carried no new financial penalty, resolving the regulator\u2019s July 2023 lawsuit accusing Mashinsky and Celsius of misleading customers about the<\/p>\n","protected":false},"author":1,"featured_media":9996,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[5011,1342,1224,5010,1381,783,62,930,178,1176,5012,5009],"class_list":["post-9995","post","type-post","status-publish","format-standard","has-post-thumbnail","category-bitcoin","tag-alex","tag-bans","tag-case","tag-celsius","tag-cftc","tag-closing","tag-crypto","tag-founder","tag-landmark","tag-lending","tag-mashinsky","tag-permanently"],"yoast_head":"\nCFTC Permanently Bans Celsius Founder Alex Mashinsky, Closing Landmark Crypto Lending Case - Crypto News: Latest Cryptocurrency News and Analysis<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptonews.uk.com\/?p=9995\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"CFTC Permanently Bans Celsius Founder Alex Mashinsky, Closing Landmark Crypto Lending Case\" \/>\n<meta property=\"og:description\" content=\"The CFTC won a permanent ban barring Alex Mashinsky from trading in regulated markets and registering with the agency, entered as a consent order in a New York federal court on June 18. 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