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 cryptocurrency platform Celsius Network.

The settlements resolve claims arising from the agency's 2023 enforcement action against Celsius and its executives, with Alexander Mashinsky agreeing to a $10 million judgment, Shlomi Daniel Leon agreeing to a $4.1 million judgment, and Hanoch 'Nuke' Goldstein agreeing to a $2.4 million judgment.

The FTC initially alleged that Celsius misrepresented the safety of consumer assets, misappropriated more than $4 billion in deposits, and made unsecured loans without sufficient liquid reserves.

Celsius had previously settled with the agency for $4.7 billion, which was suspended to permit the company to return its remaining assets to consumers through bankruptcy proceedings.