Proposed orders also ban defendants from marketing or selling products or services that can be used to deposit or withdraw assets

Washington D.C. / CRWE PRESS RELEASE / July 20, 2026 - Alexander Mashinsky, the former CEO of cryptocurrency platform Celsius Network Inc. (Celsius), and his business partners, Shlomi Daniel Leon and Hanoch “Nuke” Goldstein, will pay a total of $16.5 million to resolve the Federal Trade Commission’s charges that they deceived users by falsely promising that deposits made to their cryptocurrency platform would be safe and always available.

Mashinsky and Leon have also agreed to a ban on marketing or selling products or services that can be used to deposit, exchange, invest or withdraw assets. Similarly, Goldstein has agreed to a ban on marketing or selling retail products or services that can be used to buy, sell, deposit, withdraw, distribute or trade cryptocurrency.

In its July 2023 complaint, the FTC alleged that Celsius and its co-founders promised consumers that Celsius was “safer” than a bank or other traditional financial institutions and misrepresented that their deposits were safe because Celsius earned profits at “no risk” to consumers by making secured loans to other exchanges.

The FTC says the company and its top executives deceived users by falsely promising them that they could withdraw their deposits at any time, that the company maintained a $750 million insurance policy for deposits, that it had sufficient reserves to meet customer obligations and that those in its Earn program could earn rewards as high as 18% annual percentage yield on deposits. They also repeatedly claimed that the company did not make any unsecured loans. The FTC, however, alleged that the promises were false and that its top executives continued to claim that customers’ deposits were safe days before the company filed for bankruptcy.

The settlement orders with the FTC require Mashinsky to pay $10 million, Leon to pay $4.1 million and Goldstein to pay $2.4 million. In addition, the order with Mashinsky, the order with Leon, and the proposed order with Goldstein will also prohibit the Celsius co-founders from:

• Marketing or selling products or services that can be used to deposit or withdraw certain assets, as Mashinsky, Leon and Goldstein’s deceptive conduct led to enormous consumer injury;
• Making misrepresentations regarding the benefits of any product or service or any other material fact about any other product or service; and
• Violating the Gramm-Leach-Bliley Act, including by obtaining or attempting to obtain customer financial information by making false, fictitious or fraudulent representations; and

Finally, the orders with Mashinsky and Leon prohibit them from disclosing nonpublic personal information about consumers unless the consumer first provides express informed consent.

The Commission vote approving the stipulated final order with Mashinsky was 3–0 and was approved prior to the departure of former Commissioner Melissa Holyoak. The Commission votes approving the stipulated final orders with Leon and Goldstein were both 2–0. The FTC filed the proposed orders in the U.S. District Court for the Southern District of New York. Stipulated final orders have the force of law when approved and signed by the District Court Judge.

The staff attorneys on this matter are Stephanie Liebner, Carlton Mosley and Sally Tieu of the FTC’s Bureau of Consumer Protection.

The Federal Trade Commission works to promote competition and protect and educate consumers. The FTC will never demand money, make threats, tell you to transfer money, or promise you a prize. Learn more about consumer topics at consumer.ftc.gov, or report fraud, scams, and bad business practices at ReportFraud.ftc.gov. Follow the FTC on social media, read consumer alerts and the business blog, and sign up to get the latest FTC news and alerts.

Press Release Reference

FTC Reaches Settlement with Crypto Platform Celsius Network; Charges Former Executives with Duping Consumers into Transferring Cryptocurrency into their Platform and then Squandering Billions in User Deposits

Contact Information

Media Contact

Nicole Drayton 
Office of Public Affairs
202-326-2565

Source: Federal Trade Commission