2018
Celsius launches its Earn interest program
Celsius began offering its Earn Interest Program, a crypto lending product, in about 2018, the SEC later said. The SEC alleged the program was an unregistered securities offering.
Court case
How the Celsius Network and Alex Mashinsky case unfolded
Crypto lender Celsius Network froze customer withdrawals in June 2022 and filed for Chapter 11 a month later. Founder Alex Mashinsky was charged in July 2023 alongside civil suits by the SEC, CFTC and FTC, pleaded guilty to commodities fraud and securities fraud in December 2024, and was sentenced to 12 years in May 2025. Celsius left bankruptcy in January 2024 and has been paying creditors under its plan, and in 2026 Mashinsky settled civil cases brought by the FTC, the CFTC and New York's attorney general.
2018 to today · 24 dated events · 25 sources
Where it stands now · as of 1 November 2026
Mashinsky is serving a 12 year sentence imposed in May 2025, and his May 2026 motion to vacate it, which prosecutors oppose, had no reported ruling on the merits as of 1 November 2026. The FTC, CFTC and New York attorney general cases against him have been settled, and the SEC case was put aside in September 2026 after the two sides reported a settlement in principle, according to MLex and crypto.news.
In 30 seconds: the turning points
Stage
1. Investigation
2. Charged
3. Guilty plea
4. Sentenced
5. Serving sentence
Timeline of events
Overview · 2018 to 9 Oct 2026 · click a dot to jump
2018
· · · 47 months later
2022
12 Jun 2022
Turning point
Celsius pauses customer withdrawals
Celsius froze customer withdrawals on 12 June 2022, according to the SEC and the CFTC. The CFTC said customers had deposited about 20 billion dollars.
13 Jul 2022
Turning point
Celsius files for Chapter 11
Celsius filed for bankruptcy on 13 July 2022 with liabilities exceeding assets by more than 1 billion dollars, the CFTC said. The case was heard in the US Bankruptcy Court for the Southern District of New York.
27 Sep 2022
Mashinsky resigns as chief executive
Mashinsky submitted his resignation with immediate effect, and chief financial officer Chris Ferraro became interim chief executive and chief restructuring officer, CNBC reported.
“I regret that my continued role as CEO has become an increasing distraction”Alex Mashinsky, resignation letter, CNBC
2023
13 Jul 2023
Turning point
Mashinsky arrested and indicted
Federal prosecutors in Manhattan charged Mashinsky with seven counts including securities fraud, commodities fraud and wire fraud, and former chief revenue officer Roni Cohen-Pavon with four counts, Reuters reported. Prosecutors alleged Mashinsky manipulated the price of the CEL token while selling his own tokens, and CBS News reported they said he personally gained about 42 million dollars. Both were presumed innocent.
13 Jul 2023
SEC sues Celsius and Mashinsky
The SEC alleged that Celsius and Mashinsky made false statements about the company's finances and the safety of customer assets and manipulated the CEL market. Celsius consented to the relief sought, including a permanent injunction. The SEC said prosecutors had entered a non-prosecution agreement with Celsius.
“Celsius lied to investors by presenting itself as a safe investment opportunity and a chance to gain financial freedom”Gurbir S. Grewal, SEC enforcement director, US Securities and Exchange Commission
13 Jul 2023
CFTC sues Mashinsky and Celsius
The CFTC alleged that Celsius operated as an unregistered commodity pool operator and that Mashinsky deceived customers about the platform's safety and profitability. Celsius agreed to a consent order with a permanent injunction, and the case against Mashinsky continued.
“Innovation does not equate to immunity from compliance with the law.”Ian McGinley, CFTC enforcement director, US Commodity Futures Trading Commission
13 Jul 2023
FTC sues and Celsius agrees to a ban
The Federal Trade Commission also sued Celsius and Mashinsky, and Celsius agreed to a settlement that permanently bans it from handling customers' assets, Reuters reported.
9 Nov 2023
Turning point
Bankruptcy court confirms Celsius's plan
The bankruptcy court in Manhattan confirmed Celsius's Chapter 11 plan, which Celsius said about 98 percent of account holders approved.
🇺🇸 New York
Celsius Network (Business Wire)
Celsius Network (Business Wire)2024
31 Jan 2024
Turning point
Celsius emerges from bankruptcy and starts payouts
Celsius said it had emerged from Chapter 11 and begun distributing more than 3 billion dollars in cryptocurrency and cash to creditors, along with shares in Ionic Digital, a new bitcoin mining company owned by creditors. A litigation trust was set up to pursue claims against counterparties.
“Our exit from bankruptcy is the culmination of an extraordinary team effort”David Barse and Alan Carr, in Celsius's announcement, Celsius Network (Business Wire)
$3 billion initial creditor distributions (more than)Celsius Network (Business Wire)
Celsius Network (Business Wire)27 Nov 2024
Second distribution of about 127 million dollars
Celsius filed notice of a second payout of about 127 million dollars that brought eligible creditors to about 60.4 percent of their claims as of the petition date, The Block reported.
3 Dec 2024
Turning point
Mashinsky pleads guilty to two counts
Mashinsky pleaded guilty before Judge John G. Koeltl to one count of commodities fraud and one count of securities fraud, which carry a combined maximum of 30 years, and agreed to forfeit more than 48 million dollars, the US Attorney's Office said.
“Alexander Mashinsky orchestrated one of the biggest frauds in the crypto industry.”Damian Williams, US Attorney for the Southern District of New York, US Attorney's Office for the Southern District of New York
2025
28 Apr 2025
Prosecutors ask for a 20 year sentence
Prosecutors filed a sentencing memorandum asking for 20 years in prison and saying Mashinsky's lack of remorse showed he remained a danger, The Block reported.
8 May 2025
Turning point
Mashinsky sentenced to 12 years
Judge Koeltl sentenced Mashinsky to 12 years in prison, three years of supervised release and a 50,000 dollar fine, and ordered forfeiture of 48,393,446 dollars, the US Attorney's Office said. It said he had publicly denied selling CEL while selling large amounts himself.
“The rules against fraud still apply, and the SDNY will hold those who flout them accountable for their crimes.”Jay Clayton, US Attorney for the Southern District of New York, US Attorney's Office for the Southern District of New York
Jun 2025
Mashinsky gives up claims to bankruptcy proceeds
Under a stipulation filed in the bankruptcy court, Mashinsky and three related entities will receive no distribution under the Chapter 11 plan and his claims are withdrawn and disallowed, Decrypt reported.
Jul 2025
Judge lets Celsius pursue most claims against Tether
Bankruptcy Judge Martin Glenn allowed Celsius to proceed with most of its claims in a suit filed in August 2024 alleging that Tether improperly liquidated 39,542 bitcoin in 2022, The Block reported.
Oct 2025
Tether settles the Celsius suit for 299.5 million dollars
Tether agreed to pay 299.5 million dollars to settle the suit, in which Celsius had sought 4.3 billion dollars, The Block reported.
“Tether is pleased to have reached a settlement of all issues related to the Celsius bankruptcy.”Paolo Ardoino, Tether chief executive, The Block
2026
28 Apr 2026
Mashinsky settles the FTC case
Judge Denise Cote entered an order in the FTC case that permanently bars Mashinsky from promoting products involving the deposit, exchange or investment of assets and imposes a judgment of about 4.72 billion dollars, suspended except for 10 million dollars, Cointelegraph and The Block reported.
May 2026
Mashinsky asks the court to vacate his sentence
Mashinsky, representing himself, moved to vacate his 12 year sentence, citing ineffective counsel and what he called fruit of a poisonous tree, MLex reported. Decrypt said the handwritten motion argued that a conflict of interest at his former law firm undermined his defence.
13 May 2026
Cohen-Pavon sentenced to time served
Judge Koeltl sentenced Cohen-Pavon, who pleaded guilty in 2023, to time served and one year of supervised release, Cointelegraph reported. MLex, citing the court docket, said he was also ordered to pay about 1 million dollars in forfeiture and a 40,000 dollar fine. The US Attorney's Office has said he pleaded guilty to illegally manipulating the price of CEL.
18 Jun 2026
CFTC case against Mashinsky resolved
The CFTC said the federal court in Manhattan had entered a consent order that permanently enjoins Mashinsky from further violations of anti-fraud provisions of the Commodity Exchange Act and imposes permanent trading and registration bans.
Aug 2026
Prosecutors ask the court to deny Mashinsky's motion
Prosecutors asked Judge Koeltl to deny Mashinsky's petition without a hearing, calling many of his arguments without merit and saying his allegations were not backed by sworn evidence, Cointelegraph and GNcrypto reported.
28 Sep 2026
Mashinsky and the SEC report a deal in principle
Mashinsky and the SEC told the court they had reached an agreement in principle to settle the SEC's suit, subject to Commission approval, MLex reported citing a court filing. Crypto.news reported that Judge Paul Engelmayer then dismissed the case without prejudice on 29 September.
9 Oct 2026
Mashinsky settles with New York's attorney general
New York Attorney General Letitia James announced a settlement of her 2023 lawsuit that bans Mashinsky for life from the securities, commodities and cryptocurrency industries and provides for up to 35 million dollars in conditional payments to the state.
“I will not allow scammers to use cryptocurrencies to prey on unsuspecting New Yorkers.”Letitia James, New York Attorney General, New York State Office of the Attorney General
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Sources
25 records, ranked by type- 1Official record13 Jul 2023SEC Charges Celsius Network Limited and Founder Alex Mashinsky with Fraud and Unregistered Offer and Sale of Securities (Press Release 2023-133)US Securities and Exchange Commission · sec.gov
- 2Official record13 Jul 2023CFTC Charges Alexander Mashinsky and Celsius Network, LLC with Fraud and Material Misrepresentations in Massive Commodity Pool Scheme Involving Digital Asset Commodities (Release 8749-23)US Commodity Futures Trading Commission · cftc.gov
- 3News report27 Sep 2022Celsius CEO resigns in the middle of bankruptcy proceedings
CNBC · cnbc.com - 4News report13 Jul 2023Former Celsius CEO Mashinsky arrested, charged with fraud (Reuters)Insurance Journal (Reuters) · insurancejournal.com
- 5News report13 Jul 2023Celsius founder Alex Mashinsky arrested and charged with fraud
CBS News · cbsnews.com - 6Subject's own statement31 Jan 2024Celsius Emerges from Chapter 11 and Commences Distributions of Over $3 Billion of Cryptocurrency to Creditors Celsius Network (Business Wire) · businesswire.com
- 7Government document8 May 2025Founder Of Celsius Sentenced To 12 Years For Fraud And Market ManipulationUS Attorney's Office for the Southern District of New York · justice.gov
- 8News report28 Nov 2024Celsius to distribute $127 million to creditors in second bankruptcy payoutThe Block · theblock.co
- 9Government document3 Dec 2024Celsius Founder And Former CEO Alexander Mashinsky Pleads Guilty To Multi-Billion Dollar FraudUS Attorney's Office for the Southern District of New York · justice.gov
- 10News report29 Apr 2025Prosecutors push for 20-year sentence for former Celsius CEO Alex MashinskyThe Block · theblock.co
- 11News report20 Jun 2025Former Celsius CEO Alex Mashinsky Forfeits All Claims to Bankruptcy ProceedsDecrypt · decrypt.co
- 12News report14 May 2026Former Celsius executive Roni Cohen-Pavon sentencedCointelegraph · cointelegraph.com
- 13News report14 Oct 2025Celsius wins nearly $300 million from Tether in bankruptcy case, a fraction of its $4.3 billion claimThe Block · theblock.co
- 14Social media post28 May 2026Celsius Network founder Mashinsky moves pro se to vacate US prison sentence
MLex · mlex.com - 15Government document20 Oct 2026Clemency Grants by President Donald J. Trump (2025-Present)US Department of Justice, Office of the Pardon Attorney · justice.gov
- 16News report29 May 2026Celsius founder Mashinsky files to have 12-year crypto fraud sentence vacatedDecrypt · decrypt.co
- 17Social media post13 May 2026Former Celsius exec avoids prison in US cryptocurrency fraud case MLex · mlex.com
- 18News report29 Apr 2026Celsius founder settlement includes 10M dollar payment, suspended 4.7B dollar judgmentCointelegraph · cointelegraph.com
- 19News report29 Apr 2026Celsius founder Alex Mashinsky reaches 10 million dollar FTC settlement with lifetime crypto industry banThe Block · theblock.co
- 20Official record18 Jun 2026CFTC Resolves Action Against Celsius Founder (Release 9256-26)US Commodity Futures Trading Commission · cftc.gov
- 21News report18 Aug 2026US prosecutors urge court to deny ex-Celsius CEO Mashinsky's motion to vacateCointelegraph · cointelegraph.com
- 22News report18 Aug 2026Prosecutors urge court to deny ex-Celsius CEO's motionGNcrypto · gncrypto.news
- 23Social media post28 Sep 2026Celsius Network founder Mashinsky, US SEC reach deal in principle to settle suit MLex · mlex.com
- 24News report9 Oct 2026Alex Mashinsky gets lifetime crypto ban in New York settlementcrypto.news · crypto.news
- 25Government document9 Oct 2026Attorney General James Bans Former Cryptocurrency CEO Who Defrauded Investors from Financial IndustryNew York State Office of the Attorney General · ag.ny.gov
Last updated 1 November 2026. Spotted an error? See corrections. Every event links to the record it comes from. Allegations are attributed to whoever made them.