Celsius Network Founders Ordered to Pay More Than $16.1 Million to Resolve FTC Charges

Jul 20, 2026

The FTC finalized orders requiring former Celsius CEO Alexander Mashinsky and business partners Shlomi Daniel Leon and Hanoch “Nuke” Goldstein to pay a combined $16.114 million to resolve allegations that they deceived users about the safety and availability of deposits before the platform’s 2022 collapse. Mashinsky and Leon face permanent restrictions on marketing or selling certain asset-related products or services, while Goldstein faces a narrower restriction covering specified retail cryptocurrency products or services. The Leon and Goldstein orders each include a $4.72 billion judgment, with most of each judgment suspended subject to the applicable settlement terms. Mashinsky was separately sentenced to 12 years in prison in May 2025, while listed sources reported that Celsius creditor distributions had reached nearly 65% of eligible claims by August 2025.

FTC settlement penalties

▪Under the Federal Trade Commission settlements, Alexander Mashinsky will pay $10 million, Shlomi Daniel Leon will pay $4.1 million, and Hanoch “Nuke” Goldstein will pay $2.014 million.
▪U.S. District Judge Denise Cote entered Shlomi Daniel Leon's $4.1 million settlement order on June 29, 2026, which includes a suspended $4.72 billion judgment.
▪Court orders require Alexander Mashinsky, Shlomi Daniel Leon, and Hanoch “Nuke” Goldstein to pay a combined $16.114 million to resolve Federal Trade Commission charges.
▪Hanoch “Nuke” Goldstein’s settlement order, signed on July 20, 2026, requires him to pay $2.014 million and includes a $4.72 billion judgment, with the remainder suspended subject to the settlement terms.

Celsius fraud allegations

▪The Federal Trade Commission alleged that Celsius Network had actually extended $1.2 billion in unsecured loans by April 2022 and lacked the advertised insurance policy.
▪The Federal Trade Commission's July 2023 complaint alleged that Celsius Network falsely claimed customer deposits were safe, backed by a $750 million insurance policy, and that the company did not make unsecured loans.
▪The Federal Trade Commission alleged that Celsius Network executives continued to claim that customer deposits were safe days before the company filed for bankruptcy in July 2022; Celsius had suspended customer withdrawals in June 2022.

Mashinsky criminal sentencing

▪Former Celsius Network CEO Alex Mashinsky was sentenced to 12 years in federal prison in May 2025 after pleading guilty to commodities fraud and securities fraud.
▪The federal court ordered former Celsius Network CEO Alex Mashinsky to forfeit more than $48 million as part of his criminal sentencing.

Creditor recovery progress

▪Celsius Network held approximately $25 billion in customer assets at its peak, but customers lost access to roughly $4.7 billion when the platform collapsed in 2022.
▪In August 2025, Celsius Network initiated a third bankruptcy distribution of approximately $220.6 million, bringing cumulative creditor recoveries to nearly 65% of eligible claims.

Permanent marketing and sales restrictions

▪Former Celsius Network CEO Alex Mashinsky received a permanent trading ban from the Commodity Futures Trading Commission in a separate civil enforcement action.
▪Alexander Mashinsky and Shlomi Daniel Leon are permanently barred from marketing or selling products or services used to deposit, exchange, invest, or withdraw assets.
▪Hanoch "Nuke" Goldstein is permanently banned from marketing or selling retail products or services used to buy, sell, deposit, withdraw, distribute, or trade cryptocurrency.