Key Takeaways
- Shlomi Daniel Leon and Hanoch “Nuke” Goldstein, co-founders of Celsius, have settled Federal Trade Commission charges for a combined $6.5 million
- Leon’s settlement totals $4.1 million while Goldstein will pay $2.4 million through separate judicial orders
- The agency alleged Celsius misrepresented the security and insurance coverage of customer funds
- Including ex-CEO Alex Mashinsky’s $10 million April settlement, the three co-founders collectively owe $16.5 million
- Leon and Goldstein face permanent prohibitions on promoting or distributing cryptocurrency-related offerings
A pair of Celsius co-founders have reached agreements totaling $6.5 million to resolve Federal Trade Commission fraud allegations. The settlements finalize the agency’s enforcement actions against Shlomi Daniel Leon and Hanoch “Nuke” Goldstein in the aftermath of the cryptocurrency lending platform’s 2022 implosion.
Leon, who held the position of chief strategy officer at Celsius, agreed to a $4.1 million payment pursuant to an order issued by U.S. District Judge Denise Cote on June 29. While a $4.72 billion judgment was also imposed, the majority remains suspended contingent upon his adherence to settlement requirements.
Goldstein, previously serving as the company’s chief technology officer, faces a $2.4 million obligation under a Monday court order. His agreement includes an identical suspended judgment framework dependent on fulfillment of settlement obligations.
FTC’s Core Accusations
The Federal Trade Commission initiated legal proceedings against Celsius and its leadership in July 2023. Regulators charged that the platform portrayed itself as more secure than conventional banking institutions while making misleading statements regarding reserve holdings and insurance protections.
Celsius assured depositors they maintained unrestricted access to their assets. The platform additionally advertised a $750 million insurance policy safeguarding customer funds and represented that it avoided issuing unsecured lending products.
According to the FTC, these representations were demonstrably false. Regulatory findings indicated Celsius had extended $1.2 billion in unsecured loans by April 2022 and never maintained the advertised insurance coverage.
The agency further alleged that Celsius leadership continued providing false assurances as bankruptcy loomed. The FTC noted executives “continued to claim that customers’ deposits were safe days before the company filed for bankruptcy.”
The platform halted all withdrawals in June 2022 before declaring bankruptcy the subsequent month. At its zenith, Celsius controlled approximately $25 billion in customer assets. When operations ceased, users found themselves unable to access roughly $4.7 billion in deposited funds.
Mashinsky’s Legal Consequences
These recent settlements complement the FTC’s April resolution with former Celsius CEO Alex Mashinsky. His agreement included a $10 million payment alongside a lifetime prohibition on endorsing asset-based financial products.
The trio of co-founders have collectively remitted $16.5 million through their FTC resolutions. Each payment contributes toward satisfying the $4.72 billion judgment representing alleged consumer damages calculated by regulators.
Mashinsky additionally received a lifetime trading prohibition from the Commodity Futures Trading Commission in related civil enforcement proceedings. In May 2025, he received a 12-year federal prison sentence following guilty pleas to commodities fraud and securities fraud charges. The sentencing judge mandated forfeiture exceeding $48 million.
Ongoing Creditor Distributions
The bankruptcy estate’s recovery efforts for Celsius customers have progressed independently. In August 2025, Celsius initiated a third distribution round totaling approximately $220.6 million, elevating cumulative recoveries to nearly 65% of qualified claims at that juncture.
Following the entry of orders against Leon and Goldstein, the FTC has now concluded settlements with all three Celsius co-founders identified in its 2023 enforcement action.
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