The final chapter of accountability for Celsius leadership has concluded. The Federal Trade Commission (FTC) has officially closed its case against three founders of the crypto lending platform after Shlomi Daniel Leon and Hanoch “Nuke” Goldstein agreed to pay $6.5 million in penalties.
Under separate court orders, Leon, the former Chief Strategy Officer, was ordered to pay $4.1 million, while former CTO Goldstein was fined $2.4 million. The order for Leon was signed by Judge Denise Cote on June 29, while Goldstein’s agreement was finalized on Monday, July 21, 2026. These figures follow an earlier settlement by former CEO Alex Mashinsky, who was ordered to pay $10 million to the FTC in April 2026.
Together, the three Celsius founders face a combined $16.5 million in FTC penalties. The settlements with Leon and Goldstein mark the conclusion of the FTC’s series of lawsuits against the three executives filed since 2023.
Suspended Penalties and Operational Bans
However, the multimillion-dollar sum only scratches the surface. The FTC had originally issued a judgment of up to $4.72 billion against Leon. The court ruling stated that the vast majority of that sum is suspended, provided Leon complies with strict conditions set by the authorities.
Penalties for both extend beyond financial fines. The court strictly barred Leon from marketing or selling deposit, exchange, investment, or asset withdrawal services. Goldstein received a similar ban specifically targeting retail crypto products. Both are prohibited from ever re-engaging in the business model that once propelled Celsius to scale.
A Web of Lies That Led to Collapse
Before declaring bankruptcy in July 2022, Celsius managed up to $25 billion in assets. However, the company failed to cover $4.7 billion in customer funds when the market crashed. The FTC’s investigation revealed that Celsius’s operations were driven by false claims made to users.
Celsius was found to have deceived customers by claiming it held a $750 million insurance policy to protect user funds. Management also claimed the company never issued uncollateralized loans. FTC documents proved otherwise: Celsius had extended up to $1.2 billion in uncollateralized loans as of April 2022. This decision ultimately shattered the company’s liquidity.
Fate of Trapped Customer Funds
This FTC settlement complements previously issued criminal sentences. Mashinsky received a 12-year prison sentence in May 2025 for commodities and securities fraud. With the cases against the co-founders resolved, the primary focus remains on returning customer funds.
The third round of creditor distributions worth $220.6 million was carried out in August 2025. This step brought total asset recovery to roughly 65% of all customer claims. While the FTC and the courts may have closed the book on Celsius executives, for thousands of creditors, the loss of 35% of their assets remains a permanent loss resulting from the platform’s sweet promises.
Reported by crypto.news.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
