Binance-Investigating CFTC Finds Celsius CEO Mashinsky Guilty

There is the chance of a federal case against the CEO within in a month.

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Created by Gabor Kovacs from DailyCoin
  • A lot of crypto companies are facing the wrath of the CFTC.
  • The CFTC’s findings could lead to a federal case soon.
  • The Celsius Recovery Plan is being eyed by the SEC.

The spate of high-profile crypto company collapses, including FTX, Three Arrows Capital, and Celsius, in 2022 set a desperate tone for regulators who looked to stop the hemorrhaging. 

The SEC has ramped up its efforts with its approach being regulated by enforcement, but the Commodity Futures Trading Commission (CFTC) has also tussled with several companies. The CFTC is currently investigating Binance and recently concluded its lawsuit against Celsius.

Misleading Investors

Bloomberg has reported that the CFTC concluded that bankrupt crypto lender Celsius and its former CEO Alex Mashinsky broke U.S. rules before the firm’s collapse in 2022.


This is the first step in bringing a federal case up against Mashinsky and Celsius. If most commissioners agree with the conclusion, the case could begin within a month. 

Attorneys in the enforcement unit of the CFTC said that Celsius misled investors and should have registered with the regulator and that former CEO Alex Mashinsky also broke regulations.

The CFTC investigators’ findings are not the only ones piling up on the defunct lender. The New York Attorney General sued Mashinsky on January 5, alleging that the former CEO misled investors and caused billions of dollars in losses. 

The Recovery Plan Is Underway

In the wake of the cases against Celsius, plans are underway to try and make creditors whole again.  Celsius was given the green light to sell or convert some of its crypto holdings starting July 1. 


However, In a June 26 filing, the SEC said it “reserves its rights to challenge transactions involving crypto assets. As we obtain additional information, we will consider regulatory implications and raise them with the Court and the Debtors as appropriate.”

According to the most recent bankruptcy filing, the bankrupt lender is preparing an amended joint Chapter 11 plan in the coming weeks. The project, “following confirmation, [will] result in the Debtors making certain distributions of cryptocurrency to creditors.”

On the Flipside

  • Celsius has $3 million worth of BNB, a token recently labeled as a security, making the SEC’s involvement in the recovery plan rather sticky. 

Why This Matters

The fallout of failed crypto companies needs to be well handled. As those affected hope to be made whole, regulations can be built from the failures, and hopefully, investors will be better protected. 

Read more about Celsius Withdrawing stETH:

Lido Enables stETH Withdrawals: See Who’s Withdrawing How Much

Read more about the EU’s Data Act:

EU Parliament on Smart Contracts: Data Act Is “Not Problematic”

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Darryn Pollock

Darryn Pollock is a South African-born, UK-based journalist and content writer for DailyCoin with a focus on regulation and legislation revolving around the cryptocurrency space. He has covered the evolving crypto regulatory space, and examined how the US has approached law-making to offer protection in the growth of innovation. Darryn values traditional journalistic principles of truth, accuracy, independence, fairness, and impartiality, and has a Bachelor of Arts degree in Journalism and Law from Rhodes University in South Africa.