FTC Secures $16.5 Million Settlements with Celsius Network Co-Founders

The Federal Trade Commission recently announced settlements requiring three co-founders of cryptocurrency platform Celsius Network (Celsius) to pay a total of $16.5 million to resolve claims arising from the agency’s 2023 enforcement action against Celsius and its executives. The settlements also impose permanent restrictions on the executives’ ability to market or sell certain financial and cryptocurrency-related products and services.

The settlements resolve the FTC’s remaining claims against Celsius’ co-founders following the company’s 2023 settlement with the agency. Under that earlier settlement, Celsius agreed to a $4.7 billion monetary judgment, which was suspended to permit the company to return its remaining assets to consumers through bankruptcy proceedings, as well as broad injunctive relief restricting its future business activities.

The Allegations

In July 2023, the FTC filed a complaint in federal court against Celsius and three of its co-founders: former Chief Executive Officer Alexander Mashinsky, former Chief Strategy Officer Shlomi Daniel Leon, and former Chief Technology Officer Hanoch “Nuke” Goldstein. Celsius marketed a variety of cryptocurrency products and services to consumers, including interest-bearing accounts, loans secured by cryptocurrency assets, and cryptocurrency sales and exchange services.