Celsius Founder Alex Mashinsky Permanently Banned from Trading by CFTC
- The US Commodity Futures Trading Commission (CFTC) has permanently banned Alex Mashinsky from trading in regulated markets.
- Mashinsky and Celsius misrepresented the safety and profitability of their digital asset-based finance platform, defrauding hundreds of thousands of customers.
- Celsius received approximately $20 billion in customer funds before its collapse during a market downturn in 2022.
- Mashinsky is currently serving a twelve-year prison sentence for securities and commodities fraud.
- He faces ongoing charges from the SEC related to unregistered securities offerings and manipulation of the Celsius (CEL) token.
This settlement concludes the CFTC’s first case against a digital asset lending platform, marking a significant regulatory action in the cryptocurrency space. Mashinsky’s permanent ban reflects the serious nature of his fraudulent activities that misled investors about their assets’ safety.
As a result of these actions, Mashinsky will never be able to trade US commodities or derivatives, underscoring the consequences of misleading practices within Celsius. (Source)
