Celsius Network LLC
Celsius ran a crypto lending platform that froze customer withdrawals on 12 June 2022 and filed for Chapter 11 on 13 July 2022S5. In July 2023 the SEC, CFTC and FTC sued Celsius and founder Alexander Mashinsky, and federal prosecutors charged him with seven countsS3S4S5. Mashinsky pleaded guilty on 3 December 2024 to commodities fraud and securities fraudS2. Judge John Koeltl sentenced him to 12 years on 8 May 2025 and ordered forfeiture of more than US$48 millionS1. The company emerged from Chapter 11 on 31 January 2024S7. In July 2026 the FTC obtained orders requiring the three founders to pay US$16.5 million and banning them from parts of the crypto businessS6.
- Also known as
- Celsius, Celsius Network Limited, Celsius Network Inc.
- Headquarters
- United States
- Records from
- United States
- Current status
- Celsius Network LLC ran a crypto lending platform that froze withdrawals in June 2022 and filed for Chapter 11 in July 2022. The company emerged from Chapter 11 on 31 January 2024S7. Its founder Alexander Mashinsky was sentenced to 12 years in prison on 8 May 2025S1. In July 2026 the FTC obtained orders against the three founders totaling US$16.5 millionS6.
Scope. This record covers the crypto lender Celsius and its 2022 bankruptcy. It does not cover other firms that use the Celsius name or the temperature scale.
Claims assessed
4 claims. Scores grade the evidence for each claim, not the organization.- Supported93The US Department of Justice said Celsius founder Alexander Mashinsky pleaded guilty to commodities fraud and securities fraud and was sentenced to 12 years in prison in May 2025.Regulator statement, 8 May 20252 records citedFraud
- Supported90The SEC and the US Department of Justice said Celsius and Mashinsky manipulated the price of the CEL token through undisclosed buybacks funded in part with customer money.Regulator statement, 13 July 20233 records citedMarket conduct
- Partly supported85The FTC alleged that Celsius falsely told customers their deposits were safe, that the platform was safer than a bank, and that it held a US$750 million insurance policy for deposits.Regulator statement, 20 July 20263 records citedProduct claims
- Supported74Celsius said it emerged from Chapter 11 bankruptcy on 31 January 2024 after freezing customer withdrawals in 2022.Company statement, 27 March 20242 records citedCorporate status
Cases and proceedings
- United States v. Alexander MashinskyUS District Court for the Southern District of New York. Criminal. Not published.Stage: Convicted by guilty plea and sentenced. Motion to vacate pendingS9.
- SEC v. Celsius Network Limited and Alexander MashinskyUS Securities and Exchange Commission. Civil. 1:23-cv-06005.Stage: Complaint filed. Celsius consented to the requested reliefS4.
- FTC v. Mashinsky, Leon and GoldsteinUS Federal Trade Commission. Regulatory. Not published.Stage: Stipulated orders entered. One proposed order needed court approvalS6.
- Founders ordered to pay US$16.5 million and accept marketing bansS6
- In re Celsius Network LLCUS Bankruptcy Court for the Southern District of New York. Insolvency. Not published.Stage: Plan effective. Company emerged on 31 January 2024S7.
- Celsius emerges from Chapter 11S7
Responses on record
- Alexander Mashinsky, May 2026, on The US Department of Justice said Celsius founder Alexander Mashinsky pleaded guilty to co...
He moved to vacate his sentence on ineffective counsel grounds, saying of his lawyers, 'they stopped communication with me so I had no choice.'S8
Revision history
- Profile and 4 assessments first published. Records checked to 25 October 2026.
Source records
- S2Tier A Celsius Founder And Former CEO Alexander Mashinsky Pleads Guilty To Multi-Billion Dollar Fraud And Market Manipulation SchemesUS Attorney's Office, Southern District of New York. Government press release. 3 December 2024.Supports the guilty plea to commodities fraud and securities fraud and the CEL price support using customer money.
- S1Tier A Founder Of Celsius Sentenced To 12 Years For Fraud And Market ManipulationUS Attorney's Office, Southern District of New York. Government press release. 8 May 2025.Supports the 12-year sentence, the counts and the forfeiture. It does not resolve the later motion to vacate.
- S9Tier C Federal prosecutors blast ex-Celsius CEO's motion to vacate as 'without merit'Cointelegraph. Press report. 18 August 2026.Reports the prosecutors' opposition filing of 14 August 2026 and that the judge had not yet ruled. Press source for the current procedural state.
- S4Tier A Celsius Network Limited and Alexander "Alex" MashinskyUS Securities and Exchange Commission. Regulator press release. 14 July 2023.Litigation release on the SEC civil complaint. Supports the buyback allegations. Celsius consented. Mashinsky's resolution is not stated.
- S6Tier A Founders of Celsius Network Ordered to Pay $16.5 Million to Resolve FTC ChargesUS Federal Trade Commission. Regulator press release. 20 July 2026.Supports the deceptive marketing allegations and the US$16.5 million orders and bans. The orders are stipulated, not contested findings.
- S7Tier B Celsius Distribution FAQCelsius Network. Company statement. 27 March 2024.Company statement giving the Chapter 11 exit date of 31 January 2024. It does not state a final total recovery for creditors.
- S8Tier C Celsius founder Alex Mashinsky files motion to vacate sentenceCointelegraph. Press report. 29 May 2026.Reports Mashinsky's motion to vacate on ineffective counsel grounds. Used for the collateral challenge, not for the underlying conviction.
- S5Tier A CFTC Charges Alexander Mashinsky and Celsius Network, LLC with Fraud and Material Misrepresentations in Massive Commodity Pool Scheme Involving Digital Asset CommoditiesUS Commodity Futures Trading Commission. Regulator press release. 13 July 2023.Supports the safety misrepresentation allegation and the collapse. The charges were civil allegations at this date.
- S3Tier A Celsius Founder And Former Chief Revenue Officer Charged In Connection With Multibillion-Dollar Fraud And Market Manipulation SchemesUS Attorney's Office, Southern District of New York. Government press release. 13 July 2023.Sets out the seven original counts and quotes internal messages on CEL. These were allegations at the time of charging.