Celsius Two Co-Founders to Pay Over $6 Million to FTC in Settlement
2026-07-21 03:29
Odaily Odaily reported that Celsius co-founders Shlomi Daniel Leon and Hanoch "Nuke" Goldstein have been ordered to pay over $6 million to the U.S. Federal Trade Commission (FTC) to settle charges that they misled customers about the platform’s security before its collapse.
Goldstein, who served as Celsius’s Chief Technology Officer, must pay $2.014 million, according to an order signed by U.S. District Judge Denise Cote on Monday. Leon, the former Chief Strategy Officer of Celsius, is required to pay $4.1 million, per a separate order entered on June 29.
The FTC stated that Celsius had claimed it held sufficient reserves to meet withdrawal demands, maintained $750 million in insurance to cover customer deposits, and did not issue unsecured loans. The FTC alleged these promises were false, and that executives continued to assure customers their deposits were safe just days before the company filed for bankruptcy.
At its peak, Celsius held $25 billion in assets. When it filed for bankruptcy in July 2022, it owed users $4.7 billion. The orders also prohibit Leon from marketing or selling products or services that can be used to deposit, exchange, invest in, or withdraw assets, and bar Goldstein from marketing or selling retail products or services that can be used to trade cryptocurrencies.
Goldstein, who served as Celsius’s Chief Technology Officer, must pay $2.014 million, according to an order signed by U.S. District Judge Denise Cote on Monday. Leon, the former Chief Strategy Officer of Celsius, is required to pay $4.1 million, per a separate order entered on June 29.
The FTC stated that Celsius had claimed it held sufficient reserves to meet withdrawal demands, maintained $750 million in insurance to cover customer deposits, and did not issue unsecured loans. The FTC alleged these promises were false, and that executives continued to assure customers their deposits were safe just days before the company filed for bankruptcy.
At its peak, Celsius held $25 billion in assets. When it filed for bankruptcy in July 2022, it owed users $4.7 billion. The orders also prohibit Leon from marketing or selling products or services that can be used to deposit, exchange, invest in, or withdraw assets, and bar Goldstein from marketing or selling retail products or services that can be used to trade cryptocurrencies.
Recommended Articles
