Celsius cofounders Leon, Goldstein to pay FTC over $6M
Celsius cofounders Leon, Goldstein have been ordered to pay more than $6 million to settle US Federal Trade Commission charges that they misrepresented the safety of the Celsius crypto lending platform before its 2022 collapse. The payouts add to former CEO Alex Mashinsky's earlier $10 million FTC settlement.
Key Takeaways
- Former CTO Hanoch "Nuke" Goldstein must pay $2.014 million under a Monday court order.
- Former chief strategy officer Shlomi Daniel Leon must pay $4.1 million under a June 29 order.
- Both face bans on marketing certain crypto deposit, trading, or asset-related retail products.
- The amounts are credited against a broader $4.72 billion FTC judgment tied to alleged consumer harm.
- Celsius held about $25 billion in assets at its peak and owed users $4.7 billion when it filed bankruptcy in July 2022.
How much will Celsius cofounders Leon and Goldstein pay?
US District Judge Denise Cote signed an order requiring Goldstein, Celsius' former chief technology officer, to pay $2.014 million. Leon, the firm's former chief strategy officer, was ordered to pay $4.1 million under a separate order entered on June 29.
Together, the Cointelegraph-reported settlements push total FTC-related payouts involving top Celsius leaders well past Mashinsky's April deal. For more fintech and crypto alerts, follow our ongoing coverage of enforcement actions.
What did the FTC allege against the Celsius executives?
The FTC alleged Celsius falsely told customers it held enough reserves to meet withdrawals, maintained a $750 million insurance policy covering deposits, and did not issue unsecured loans. Regulators said top executives kept claiming customer deposits were safe days before the July 2022 bankruptcy filing.
The order also bars Leon from marketing or selling products or services that can be used to deposit, exchange, invest, or withdraw assets. Goldstein agreed to a ban on marketing or selling retail products or services used to buy, sell, deposit, withdraw, distribute, or trade cryptocurrency.
How does this fit with Alex Mashinsky's FTC case?
In April, Mashinsky agreed to an FTC settlement that permanently bars him from promoting asset-related products and required a $10 million payment as part of a broader, partially suspended $4.72 billion judgment. Leon's and Goldstein's payments will also be credited against that judgment, which the FTC said reflects alleged consumer harm.
Separately, Mashinsky was sentenced in May 2025 to 12 years in prison after pleading guilty to commodities and securities fraud. Prosecutors said he misled customers about profitability, investment risks, and the safety of customer funds—underscoring why these latest cofounder settlements matter for accountability after one of crypto's largest lending failures.