FTC Secures $16.5M Settlements from Celsius Co-Founders

The Federal Trade Commission (FTC) has secured $16.5 million in settlements from three co-founders of Celsius Network, Alex Mashinsky, Shlomi Daniel Leon, and Hanoch 'Nuke' Goldstein.

The settlements resolve claims arising from the FTC's 2023 enforcement action against Celsius and its executives, who were accused of misrepresenting their cryptocurrency platform as a safer alternative to traditional financial institutions.

Celsius marketed products such as interest-bearing accounts, loans secured by cryptocurrency assets, and cryptocurrency sales and exchange services, but the FTC alleged that these representations were false.

The FTC claimed that Celsius misappropriated over $4 billion in consumer cryptocurrency deposits, using them to fund company operations, pay rewards to other customers, make loans, and pursue high-risk investments.