The Federal Trade Commission has completed settlements with all three founders of Celsius Network, requiring Alexander Mashinsky, Shlomi Daniel Leon and Hanoch “Nuke” Goldstein to pay a combined $16.5 million over allegations that they deceived customers about the safety, liquidity and financial condition of the failed cryptocurrency platform.
Mashinsky will pay $10 million, Leon will pay $4.1 million and Goldstein will pay $2.4 million. Goldstein’s order was entered by the U.S. District Court for the Southern District of New York on July 20, completing the FTC’s individual cases against Celsius’ three founders. Mashinsky’s order was entered on April 28, while Leon’s was entered on June 29.
The settlements resolve civil allegations rather than criminal charges, and the three men did not admit or deny the FTC’s claims. The orders nevertheless impose financial judgments and permanent restrictions on their future participation in businesses that handle cryptocurrency or other customer assets.
The payments do not mean each former Celsius customer will automatically receive money from the FTC settlements. The orders permit money collected by the agency to be used for consumer relief, while the principal process for distributing Celsius’ remaining assets and recoveries to creditors continues through the company’s bankruptcy and related proceedings.
Mashinsky to Pay $10 Million
Former Celsius CEO Alexander Mashinsky is responsible for the largest share of the FTC settlement at $10 million. The order permanently prohibits him from marketing or selling products and services that allow customers to deposit, exchange, invest or withdraw assets.
Mashinsky’s FTC case is separate from the criminal prosecution that resulted in his imprisonment. He pleaded guilty in December 2024 to commodities fraud and securities fraud arising from false representations about Celsius and a scheme to manipulate the price of the company’s CEL token.
U.S. District Judge John G. Koeltl sentenced Mashinsky on May 8, 2025 to 12 years in federal prison, followed by three years of supervised release. He was also ordered to pay a $50,000 fine and forfeit $48,393,446.
Federal prosecutors said Mashinsky marketed Celsius as a safer alternative to a bank while the company used customer deposits to finance risky investments. He also admitted participating in purchases of CEL intended to support the token’s price while selling his own holdings. According to the Department of Justice, Mashinsky generated approximately $48 million from those token sales.
When Celsius stopped withdrawals, hundreds of thousands of customers had approximately $4.7 billion in inaccessible assets on the platform, according to federal prosecutors.
Leon and Goldstein Complete FTC Settlements
Celsius co-founder Shlomi Daniel Leon agreed to pay $4.1 million. His order imposes restrictions similar to those placed on Mashinsky, preventing him from marketing or selling services through which customers can deposit, exchange, invest or withdraw assets.
Goldstein will pay $2.4 million and is permanently prohibited from marketing or selling retail products or services that allow consumers to buy, sell, deposit, withdraw, distribute or trade cryptocurrency.
The difference in the three settlement amounts should not necessarily be interpreted as the FTC assigning a precise level of culpability to each founder. Settlement figures can be affected by negotiations, available assets, other payment obligations and the terms agreed with each defendant.
With Goldstein’s order now entered, the FTC has resolved its claims against every individual defendant named in the Celsius case.
FTC Says Celsius Promised Withdrawals at Any Time
The FTC’s case focused on specific representations Celsius and its executives made while persuading customers to transfer cryptocurrency onto the platform.
According to the agency, Celsius falsely told customers they could withdraw their deposits at any time and that the company maintained sufficient reserves to satisfy its obligations. Celsius also allegedly claimed that customer deposits were protected by a $750 million insurance policy.
The FTC said Celsius did not have a $750 million insurance policy covering customer deposits. It also alleged that the company lacked a reliable system for tracking its assets and liabilities until the middle of 2021, despite presenting itself as a financially controlled platform capable of protecting customer funds.
Celsius promoted its Earn product with annual percentage yields of up to 18%. The FTC said most customers received considerably less and that the highest advertised rates were generally limited to users participating in Celsius’ loyalty program and depositing selected cryptocurrencies.
The company and its executives also repeatedly claimed that Celsius did not make unsecured loans. The FTC alleged that the platform had made unsecured institutional loans and engaged in other risky activities that were not adequately disclosed to depositors.
Customers Were Told Celsius Was Safer Than Banks
Celsius marketed itself as an alternative to conventional banking, using online videos, social media and public appearances to argue that customers could earn high returns without sacrificing access to their assets.
The FTC’s 2023 complaint cited claims that Celsius involved less risk than banks and that customer cryptocurrency remained safe on the platform. Those assurances were important because customers transferred ownership and control of digital assets to Celsius in exchange for promised interest payments and the expectation that withdrawals would remain available.
As the company’s financial condition deteriorated, the FTC alleges its executives continued to reassure customers and solicit additional deposits. In May 2022, Mashinsky publicly claimed that Celsius was stronger than ever and had billions of dollars in liquidity.
Days before withdrawals were suspended, Celsius continued to claim that it had more than enough assets to meet its obligations, according to the agency.
Celsius froze withdrawals, swaps and transfers on June 12, 2022. The company filed for Chapter 11 bankruptcy protection the following month, on July 13, leaving customers unable to access billions of dollars in cryptocurrency.
Celsius Agreed to a Suspended $4.7 Billion Judgment
The FTC first sued Celsius and its founders in July 2023. The corporate entities settled immediately, accepting a permanent ban on handling customer assets and a monetary judgment of approximately $4.7 billion.
That judgment was suspended so Celsius could use its remaining assets in the bankruptcy process. The structure was intended to avoid diverting money away from creditor recoveries while preserving the judgment if the companies were found to have misrepresented their financial position.
Mashinsky, Leon and Goldstein did not settle at that time, allowing the FTC’s individual claims to continue until the agreements reached in 2026.
The $16.5 million now owed by the founders is separate from the suspended corporate judgment. It is also separate from Mashinsky’s criminal forfeiture order and the distributions being managed through the Celsius bankruptcy estate.
Will Celsius Customers Receive the $16.5 Million?
The settlement documents allow the FTC to use money it collects for consumer relief, including direct payments and the costs of administering a distribution program. Any money that cannot practicably be used for consumer relief may be transferred to the U.S. Treasury, subject to the terms of the orders.
The agency has not announced how much of the $16.5 million will ultimately be collected, whether it will establish a separate Celsius refund program or how any eligible recipients would be identified.
Former Celsius users should therefore not treat the $16.5 million figure as an additional guaranteed distribution divided among all account holders. Creditor recoveries continue to depend primarily on the bankruptcy estate, available assets, litigation proceeds and the distribution rules governing approved claims.
The settlements are still significant because they impose personal financial consequences on all three founders and permanently restrict their ability to participate in businesses involving customer assets. They also close the remaining FTC cases arising from one of the largest failures of the 2022 cryptocurrency lending crisis.
FTC Case Ends as Criminal Consequences Continue
The FTC action addressed alleged consumer deception and unfair business practices. Mashinsky’s criminal case separately addressed conduct prosecutors proved through his guilty plea, including commodities fraud and securities fraud involving CEL.
The distinction matters. Leon and Goldstein resolved the FTC’s civil allegations without admitting liability, while Mashinsky admitted criminal offenses and is serving a 12-year prison sentence.
Together, the FTC settlement, the Celsius bankruptcy and Mashinsky’s conviction show the different enforcement channels created by the collapse. Bankruptcy proceedings determine creditor claims and distributions, consumer-protection authorities pursue deceptive marketing and misuse of deposits, and criminal prosecutors address conduct that can be proved beyond a reasonable doubt.
The FTC’s completion of the three founder settlements ends one part of the Celsius case. It does not undo customer losses or guarantee an additional recovery for every depositor, but it places $16.5 million in personal judgments on the executives the agency accused of convincing consumers that Celsius was safe, insured and capable of returning their cryptocurrency whenever requested.