WASHINGTON, June 18, 2026 — Former Celsius Network CEO Alexander Mashinsky admitted violating anti-fraud provisions of the Commodity Exchange Act as part of a consent order entered by the U.S. District Court for the Southern District of New York, resolving the Commodity Futures Trading Commission’s 2023 enforcement action against him and imposing a permanent ban from participating in CFTC-regulated markets.
The order permanently enjoins Mashinsky from further violations of Section 6(c)(1) of the Commodity Exchange Act and CFTC Regulation 180.1(a)(1)-(3). The court also imposed permanent trading and registration bans, according to the CFTC.
Resolution of the CFTC case
The CFTC filed its complaint against Mashinsky and Celsius Network in July 2023, alleging that the company and its founder engaged in a scheme to defraud customers through misrepresentations concerning the safety, profitability and regulatory compliance of Celsius’ digital asset platform.
Celsius itself agreed to a consent order shortly after the lawsuit was filed, leaving Mashinsky as the only remaining defendant.
Under the consent order entered on June 12, 2026, Mashinsky admitted violating Count I of the complaint, which alleged violations of Section 6(c)(1) of the Commodity Exchange Act and CFTC Regulation 180.1(a)(1)-(3). Counts II, III and IV of the complaint were dismissed with prejudice.
Allegations surrounding Celsius’ lending platform
According to the CFTC, Mashinsky and Celsius portrayed the company as a safe alternative to traditional banks while promising customers high yields on deposited digital assets.
The agency alleged that, in order to generate the promised returns, Celsius pursued increasingly risky strategies, including extending uncollateralized loans and participating in decentralized finance arrangements. According to the complaint, Celsius suffered significant losses while continuing to assure customers that their assets were safe.
The CFTC said Celsius received customer funds totaling approximately $20 billion in value before the company ultimately filed for bankruptcy.
Permanent trading and registration prohibitions
The consent order permanently bars Mashinsky from trading on entities registered with the CFTC, entering transactions involving commodity interests, controlling commodity trading accounts, soliciting or accepting funds for commodity transactions, registering with the Commission, and acting as a principal, officer, employee or agent of a person registered with the agency.
Mashinsky also waived his right to appeal and agreed not to publicly deny the allegations contained in the complaint or create the impression that the complaint lacked a factual basis.
Parallel criminal case
The civil resolution follows a parallel criminal case brought by the U.S. Attorney’s Office for the Southern District of New York.
Mashinsky pleaded guilty in December 2024 to one count of commodities fraud and one count of securities fraud. In May 2025, he was sentenced to 12 years in prison and ordered to pay a $50,000 fine and forfeit approximately $48.39 million.
Why it matters
The consent order closes one of the CFTC’s most prominent crypto-related enforcement cases and formalizes a lifetime ban preventing Mashinsky from participating in CFTC-regulated markets.
The resolution follows the collapse of several crypto lending platforms during the 2022 market downturn and highlights the CFTC’s continued focus on digital asset-related fraud.
