CFTC Reaches Final Settlement With Former Celsius CEO, Imposes Lifetime Ban
Summary
- The U.S. CFTC said it has reached a final settlement in its case against former Celsius CEO Alex Mashinsky.
- Under the settlement, Mashinsky is permanently barred from all business activities and trading related to the CFTC or markets overseen by the CFTC.
- The move underscores the hard-line stance US regulators are taking against misconduct by cryptocurrency industry executives.
Forecast Trend Report by Period
The U.S. Commodity Futures Trading Commission has reached a final settlement in its case against former Celsius Network Chief Executive Officer Alex Mashinsky, concluding litigation tied to the bankrupt cryptocurrency lending platform.
Crypto news outlet The Block reported on June 18 that the settlement permanently bars Mashinsky from participating in any business activity involving the CFTC or markets it oversees.
Under the settlement, Mashinsky cannot act as a CFTC-registered entity and is also banned from trading in those markets.
The CFTC did not impose any additional monetary penalty as part of the agreement.
The agency had previously submitted the proposed settlement to the U.S. District Court for the Southern District of New York, seeking to permanently restrict and prohibit Mashinsky's commodities-related activities. The court approved the agreement on June 18.
Mashinsky was charged with misleading Celsius customers and falsely promoting the platform's financial condition, among other allegations. He is currently serving a 12-year prison sentence.
The move underscores the hard-line stance US regulators are taking against misconduct by cryptocurrency industry executives.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
