The Commodity Futures Trading Commission said it has settled its case against former Celsius CEO Alexander Mashinsky, who is currently serving a 12-year prison sentence.

On Thursday, the CFTC announced that the U.S. District Court for the Southern District of New York had entered a consent order prohibiting Mashinsky from engaging in future violations of anti-fraud provisions and also imposing permanent bans on trading and registration.

Mashinsky was arrested in 2023 after U.S. prosecutors alleged he defrauded customers and misrepresented Celsius’ profitability. He pled guilty to one count of commodities fraud and one count of securities fraud and was later sentenced to 12 years in prison and ordered to pay almost $50 million in fines.

Celsius operated as a crypto lender that allowed customers to earn interest and take out loans. The company filed for bankruptcy in 2022 and was later wrapped up in 2024. As part of Celsius' wind-down, some funds were used to create a new bitcoin mining company called Ionic Digital.

The CFTC sued Celsius and Mashinsky in 2023 and said the former CEO defrauded customers and said he misrepresented the safety of the platform while engaging in risky investment strategies.

The Securities and Exchange Commission also sued the crypto lender and Mashinsky in 2023 for allegedly raising billions through fraudulent and unregistered sales of crypto, repeatedly lying to investors about Celsius’ financial standing and manipulating the price of CEL, the company's native token.

Last month, Mashinsky reached a $10 million settlement with the Federal Trade Commission after the agency said Mashinsky and other Celsius executives engaged in "deceptive and unfair acts or practices" in marketing crypto lending and custody services.