The U.S. Federal Trade Commission (FTC) completed its enforcement action against Celsius co-founders on July 21: a judge ordered former Chief Technology Officer Hanoch Goldstein to pay $2.014 million; former Chief Strategy Officer Shlomi Daniel Leon to pay $4.1 million; together, the two totaled more than $6 million. The FTC also imposed industry bans prohibiting marketing or sales.
Fines and Industry Bans Ordered for Leon and Goldstein
According to an FTC statement and a court order, the enforcement actions against three Celsius executives are as follows:
Shlomi Daniel Leon (former Chief Strategy Officer): $4.1 million fine; the order was issued on June 29, 2026; banned from marketing or selling products or services that can be used for deposits, swaps, investing, or withdrawing assets
Hanoch "Nuke" Goldstein (former Chief Technology Officer): $2.014 million fine; signed by Judge Dennis Cote on July 21, 2026 (Monday); banned from marketing or selling retail products that can be used to buy, sell, deposit, withdraw, distribute, or trade cryptocurrency
Alex Mashinsky (former CEO): $10 million FTC settlement (April 2026), as part of a $4.72 billion judgment that was partially stayed; permanently banned from promoting asset-related products; additionally sentenced in May 2025 to 12 years in prison (commodity and securities fraud offenses)
The amounts paid by Leon and Goldstein were deducted from the total $4.72 billion judgment amount.
FTC Allegations: Celsius Misrepresented Reserves, a $750 Million Insurance Policy, and an Unsecured Lending Policy
According to the FTC’s allegations, Celsius was accused of making the following false advertising: (1) falsely claiming it had sufficient reserves to meet withdrawal demands; (2) falsely claiming it held a $750 million insurance policy to protect customers’ deposits; (3) falsely claiming it did not issue unsecured loans. The FTC said company executives continued to claim, in the days before the company filed for bankruptcy, that customers’ deposits were safe.
At its peak, Celsius had $25 billion in AUM; it filed for bankruptcy in July 2022 and owed users $4.7 billion.
FAQ
How much were the fines ordered by the FTC against Celsius co-founders Leon and Goldstein?
According to the FTC statement and court orders, Leon was ordered to pay $4.1 million (the order was issued on June 29), and Goldstein was ordered to pay $2.014 million (signed by Judge Dennis Cote on Monday, July 21). Together, the total is more than $6 million, and both payments are deducted from the $4.72 billion total judgment amount.
What industry bans are Leon and Goldstein facing?
According to the FTC order, Leon is prohibited from marketing or selling products that can be used for deposits, swaps, investing, or withdrawing assets; Goldstein is prohibited from marketing or selling retail products that can be used to buy, sell, deposit, withdraw, distribute, or trade cryptocurrency.
Why did Alex Mashinsky’s prior FTC settlement and criminal conviction happen?
According to the FTC statement, in April 2026 Mashinsky agreed to a $10 million settlement with the FTC as part of a partially stayed $4.72 billion judgment, while also being permanently banned from promoting asset-related products; additionally, in May 2025 he was sentenced to 12 years in prison for commodity and securities fraud.
