Celsius founders to pay FTC $16.5M

Three former Celsius Network executives—Alex Mashinsky, Shlomi Daniel Leon, and Hanoch Goldstein—must pay $16.5 million to resolve Federal Trade Commission charges that they deceived users by falsely promising that deposits with the cryptocurrency platform were safe and always available. The FTC alleged that Celsius and its founders claimed the platform was safer than a bank, maintained a $750 million insurance policy, held sufficient reserves, and offered up to 18% annual interest on its Earn product. These promises were false, and the founders continued to lie within days of Celsius filing for bankruptcy in 2022. Mashinsky, who pleaded guilty to commodities fraud in 2024 and was sentenced to 12 years in prison, will pay $10 million. Leon will pay $4.1 million, and Goldstein will pay $2.4 million. Mashinsky and Leon are banned from marketing or selling products related to asset deposits, exchanges, investments, or withdrawals, while Goldstein is banned from crypto-related marketing. Mashinsky recently filed to vacate his sentence, citing ineffective counsel and the 'fruit of the poisonous tree' legal doctrine.