Key Points
- Former Celsius executives Shlomi Daniel Leon and Hanoch “Nuke” Goldstein have reached settlements totaling $6.5 million with the FTC
- Leon’s settlement requires $4.1 million in payment; Goldstein must pay $2.4 million according to separate federal court orders
- Federal regulators alleged Celsius misrepresented the safety of customer funds and insurance protections
- Including ex-CEO Alex Mashinsky’s earlier $10 million settlement from April, the three co-founders collectively owe $16.5 million
- Leon and Goldstein face permanent prohibitions on promoting or distributing cryptocurrency-related offerings
Former executives of Celsius have reached monetary settlements with federal regulators totaling $6.5 million to resolve fraud allegations. The agreements finalize the Federal Trade Commission’s enforcement actions against Shlomi Daniel Leon and Hanoch “Nuke” Goldstein after the cryptocurrency lending platform’s dramatic failure in 2022.
Leon, who held the position of chief strategy officer at Celsius, agreed to a $4.1 million payment pursuant to a court order issued by U.S. District Judge Denise Cote on June 29. Additionally, a judgment of $4.72 billion was imposed against him, though the bulk remains suspended contingent upon his adherence to settlement obligations.
Goldstein, previously serving as the platform’s chief technology officer, agreed to remit $2.4 million following an order signed this Monday. His arrangement includes an identical suspended judgment framework dependent on compliance with the settlement provisions.
Federal Regulator’s Accusations
The FTC initiated legal proceedings against Celsius and its leadership in July 2023. Regulators contended the platform marketed itself as a more secure alternative to conventional banking institutions while simultaneously making misleading statements regarding its reserve holdings and insurance protections.
Celsius assured depositors they maintained unrestricted withdrawal access. The platform additionally represented it possessed a $750 million insurance policy protecting customer assets and maintained it avoided issuing unsecured loans.
Federal authorities challenged these representations. Regulatory findings indicated Celsius had extended $1.2 billion in unsecured loans by April 2022 and lacked the advertised insurance protection.
Authorities further alleged company executives maintained reassuring communications with customers even as bankruptcy loomed. According to the FTC, leadership “continued to claim that customers’ deposits were safe days before the company filed for bankruptcy.”
Celsius halted all withdrawals in June 2022, subsequently declaring bankruptcy one month later. The platform managed approximately $25 billion in assets at its zenith. During the collapse, users found themselves unable to access roughly $4.7 billion in deposited funds.
Mashinsky’s Settlement and Incarceration
These recent agreements follow the FTC’s April settlement with former Celsius CEO Alex Mashinsky. That arrangement required a $10 million payment alongside a lifetime prohibition on marketing asset-related products.
Collectively, the three founding executives have remitted $16.5 million through their FTC agreements. Each financial contribution applies toward the $4.72 billion judgment associated with alleged consumer damages identified by regulators.
Mashinsky additionally received a lifetime trading prohibition from the Commodity Futures Trading Commission through separate civil enforcement proceedings. In May 2025, a federal judge imposed a 12-year prison term following his guilty pleas to commodities fraud and securities fraud charges. The court mandated forfeiture exceeding $48 million.
Ongoing Creditor Reimbursement
Bankruptcy proceedings for Celsius depositors have progressed independently. The company initiated a third creditor distribution of approximately $220.6 million in August 2025, elevating total recoveries to roughly 65% of qualified claims at that juncture.
Following the entry of orders against Leon and Goldstein, the FTC has concluded settlements with all three Celsius co-founders identified in its 2023 complaint.
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