Crypto Fraudster Alexander Mashinsky Banned from Trading for Life

Former Celsius Network CEO Alexander Mashinsky, already serving 12 years in prison for a $4.7 billion fraud, has been permanently barred from commodities trading by a federal court.

Crypto Fraudster Alexander Mashinsky Banned from Trading for Life

A federal court in Manhattan has entered a consent order that permanently resolves the Commodity Futures Trading Commission's civil suit against Celsius Network founder and former chief executive Alexander Mashinsky.

Mashinsky is already serving a 12-year prison sentence after pleading guilty to criminal charges that he defrauded consumers of roughly $4.7 billion. The new court order adds a lifetime ban: he may never again trade commodities or register with the CFTC, even after completing his prison term.

The CFTC had sued Mashinsky over his role in the collapse of Celsius Network, a crypto-lending platform that promised outsized yields to depositors before filing for bankruptcy in 2022. Prosecutors said Mashinsky repeatedly misled customers about the safety of their assets while secretly taking risky bets with customer funds.

The consent order brings the regulatory case to a close without further litigation. It underscores the aggressive stance U.S. regulators are taking against executives of failed crypto firms.

Mashinsky's criminal sentence was handed down earlier this year. The $4.7 billion in losses made it one of the largest consumer-fraud cases in the crypto sector to date.

Source: Courthouse News Service – https://www.courthousenews.com/crypto-fraudster-banned-from-trading/

Source: Courthouse News Service