Ex-Celsius CEO Mashinsky gets U.S. CFTC ban in final resolution with regulator

Policy Ex-Celsius CEO Mashinsky gets U.S. CFTC ban in final resolution with regulator Alexander Mashinsky, the founder of failed crypto lender Celsius, had earlier been imprisoned for fraud and is now formally banned from CFTC registration. By Jesse Hamilton | Edited by Nikhilesh De Jun 18, 2026, 7:26 p.m. 2 min read Make preferred on Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Make preferred on Alex Mashinsky, the imprisoned former CEO of Celsius, is now banned from commodities activity. (CoinDesk) Summary Show The disgraced former founder and CEO of a major crypto firm, Celsius' Alexander Mashinsky, has been formally banned from commodities activity as the Commodity Futures Trading Commission wrapped up the years-long case. Mashinsky had already been sentenced to 12 years in prison in connection with his fraud convictions. The punishments of Alexander Mashinsky, the imprisoned former chief of Celsius until its high-profile collapse, continue with a formal banishment from any ability to seek business with the U.S. Commodity Futures Trading Commission or the trading it oversees. The derivatives regulator didn't pile any new fines onto Mashinsky, who previously pleaded guilty to accusations he misled the public about the health of his failing crypto firm as it was imploding, but the agency added an expected registration and trading ban, according to a Thursday statement. That's a minor addition to the 12-year prison sentence imposed in his criminal case , in which he pleaded guilty to fraud, was hit with a $50,000 fine and ordered to return $48 million. The CFTC's arrangement, which “permanently restrained, enjoined and prohibited” him from any commodities activity, has been recorded in U.S. District Court for the Southern District of New York, according to the filing, and was approved by a judge on Thursday, the court docket shows. "Mashinsky and Celsius engaged in a scheme to defraud hundreds of thousands of customers by misrepresenting the safety, profitability, and regulatory compliance of Celsius’ digital asset-based finance platform," the CFTC said in a statement. In the widespread collapse of the crypto industry in 2022, "while continuing to tell its customers their assets were safe and earning rewards, Celsius suffered devastating losses." Celsius was among the prominent firms collapsing within close proximity of each other, amplifying the destruction of that period. Read More: Celsius Founder Alex Mashinsky Sentenced to 12 Years in Prison for Fraud Fraud Latest Crypto News 1 U.S. agencies seek stablecoin customer-ID rules akin to banks in new GENIUS Act pitch 2 hours ago 2 Ethereum Foundation loses another key leader as co-executive director Hsiao-Wei Wang resigns 3 hours ago 3 Crypto for Advisors: Trading the bitcoin cycle 4 hours ago 4 Algorand unveils roadmap to achieve quantum resistance by 2028 5 hours ago 5 CoinDesk 20 performance update: Stellar (XLM) jumps 10% while index declines 6 hours ago 6 Alchemy's AI-driven identity and payment service gains access to Visa network 6 hours ago 7 Hive shares jumps 10% on $220m Canada sovereign AI infrastructure deal 7 hours ago 8 The great rotation: Investors desert the Magnificent 7, crypto for AI bottlenecks 7 hours ago 9 Bitcoin's nemesis, the Dollar Index, is on the verge of a major breakout 8 hours ago 10 Aster popped over 10% on radical 'buyback and burn' upgrade. But gains were short-lived 8 hours ago Latest Research CEX Volumes Drop to Lowest Since September 2024 as RWA Perps Hit Record High CEX Volumes Drop to Lowest Since September 2024 as RWA Perps Hit Record High In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high. By CoinDesk Research Jun 15, 2026 In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high. Why it matters : In May, combined exchange volumes fell 3.45% to $4.41T; the lowest since September 2024. RWA perpetual futures volumes rose 10.4% against the trend, hitting a new all-time high. View Full Report More From Policy U.S. agencies seek stablecoin customer-ID rules akin to banks in new GENIUS Act pitch Malta's financial regulator explores bringing parts of DeFi under MiCA's orbit CME chief executive says company plans to sue CFTC after perpetual futures approval