Final Regulatory Settlement

The Commodity Futures Trading Commission reached a consent order with Alex Mashinsky on June 18, 2026. A federal court in New York approved the order, which permanently bars Mashinsky from trading in CFTC-regulated markets and from any future registration with the agency.

This settlement concludes the CFTC's case against Mashinsky and Celsius Network. The agency described it as its first enforcement action targeting a digital asset lending platform operator.

Allegations of Misleading Customers

The CFTC accused Mashinsky and Celsius of operating a scheme that defrauded hundreds of thousands of customers. The platform promoted itself as a safe option for earning yields on crypto deposits while pooling customer assets for higher-risk activities, including uncollateralized loans and decentralized finance positions.

Celsius attracted approximately $20 billion in customer funds. The company halted withdrawals in 2022 amid market stress, leading to bankruptcy and major losses for users.

Mashinsky's Criminal Sentence

Mashinsky is currently serving a 12-year federal prison term after pleading guilty to commodities fraud and securities fraud. The criminal sentencing in May 2025 also included a $50,000 fine and forfeiture of more than $48 million.

Additional restrictions come from other agencies. The Federal Trade Commission issued an order barring Mashinsky from certain asset-related activities with a large judgment, much of which is suspended under compliance terms.

Ongoing Legal Matters

A separate Securities and Exchange Commission civil case against Mashinsky remains active. It focuses on unregistered securities offerings, false statements, and manipulation claims related to the Celsius token.

Mashinsky has filed requests to challenge aspects of his criminal sentence, citing issues with his defense and external factors. Prosecutors must respond to these filings by mid-August 2026.

Celsius Bankruptcy and Creditor Recoveries

Celsius filed for bankruptcy in July 2022. The restructuring process has involved multiple distributions to creditors. Recovery rates reached around 65% in later payout rounds through asset sales and other resolutions, including the creation of a new Bitcoin mining entity.