Alexander Mashinsky, the imprisoned founder and former CEO of collapsed crypto lender Celsius, has been formally banned from commodities activity by the U.S. Commodity Futures Trading Commission (CFTC), concluding the agency's years-long case. The CFTC's order, approved by a judge on Thursday, permanently restrains, enjoins, and prohibits Mashinsky from any trading or registration with the CFTC. No new fines were imposed, as Mashinsky already faces a 12-year prison sentence for fraud, a $50,000 fine, and a $48 million restitution order. The CFTC stated that Mashinsky and Celsius misrepresented the safety, profitability, and regulatory compliance of their platform, defrauding hundreds of thousands of customers. While assuring customers their assets were safe, Celsius suffered devastating losses during the 2022 crypto industry collapse. This ban adds to Mashinsky's prior criminal penalties, marking the end of a high-profile case tied to one of the major crypto bankruptcies of that period.

Key facts

• Mashinsky permanently banned from CFTC registration and commodities trading.
• He was already sentenced to 12 years in prison for fraud, with $50k fine and $48M restitution.
• CFTC accused him of misleading customers about Celsius's safety and profitability.
• Celsius collapsed in 2022 amid widespread crypto industry failures.