In a significant development following the 2022 collapse of Celsius, two of the company’s co-founders have agreed to pay a combined $6.5 million to settle fraud charges brought against them by the Federal Trade Commission (FTC). Shlomi Daniel Leon and Hanoch “Nuke” Goldstein’s settlements mark a pivotal moment in the ongoing fallout from the once-prominent crypto lending platform’s downfall.
Leon, who served as the chief strategy officer at Celsius, will pay $4.1 million under a court order issued by U.S. District Judge Denise Cote on June 29. Meanwhile, Goldstein, the former chief technology officer, has been ordered to pay $2.4 million as part of a separate agreement finalized recently. Each settlement also includes a suspended judgment, contingent upon their compliance with the terms presented.
FTC Allegations Against Celsius
The FTC initially filed charges against Celsius and its executives in July 2023, accusing them of misleading customers about the safety of their deposits. The agency alleged that Celsius falsely claimed to have a $750 million insurance policy covering customer funds and touted itself as a safer alternative to traditional banks.
Despite these assertions, the FTC revealed that Celsius had issued approximately $1.2 billion in unsecured loans by April 2022 and lacked the insurance coverage it had advertised. This discrepancy raises serious questions about the company’s operational integrity and transparency.
As the company hurtled toward bankruptcy, regulators noted that Celsius executives continued to assure customers that their deposits were secure, even days before the bankruptcy filing in July 2022. At its peak, Celsius managed around $25 billion in assets, with customers holding approximately $4.7 billion in inaccessible funds when the platform collapsed.
Further Consequences for Co-Founders
These recent settlements come on the heels of a $10 million agreement reached in April 2026 by former CEO Alex Mashinsky, who also faces a permanent ban from promoting any asset-related products. Collectively, the three co-founders have now paid $16.5 million to settle FTC charges, which reflect the severity of the financial misconduct associated with the Celsius platform.
Moreover, Mashinsky received a 12-year prison sentence for commodities and securities fraud, along with a forfeiture of more than $48 million, underscoring the legal repercussions stemming from the Celsius scandal.
Ongoing Recovery Efforts for Creditors
As legal complexities unfold, the bankruptcy recovery process for Celsius customers continues. In August 2025, the company initiated a third distribution of approximately $220.6 million to creditors, which has helped recover nearly 65% of eligible claims to date.
With the recent settlements entered for Leon and Goldstein, the FTC has now resolved cases against all three co-founders implicated in the 2023 charges. This marks a crucial step in addressing the fallout from one of the most significant collapses in the cryptocurrency sector, highlighting the importance of regulatory vigilance in this rapidly evolving market.
