On 20 July 2026, the FTC announced court orders requiring three Celsius Network Inc. executives to pay a combined $16.5 million to settle consumer deception charges. The executives are Alexander Mashinsky (former CEO), Shlomi Daniel Leon (former CFO), and Hanoch 'Nuke' Goldstein (co-founder). The settlement resolves the FTC's July 2023 complaint in FTC v. Celsius Network, Inc., et al. (Docket No. 222-3137). Celsius filed for Chapter 11 bankruptcy in July 2022 after freezing user withdrawals.
The FTC charged the defendants with violations of Section 5 of the FTC Act, 15 U.S.C. § 45, prohibiting unfair or deceptive acts or practices in commerce. Individual payments are: Mashinsky pays $10 million, Leon pays $4.1 million, and Goldstein pays $2.4 million. Mashinsky and Leon accept a permanent ban on marketing or selling products that can be used to deposit, exchange, invest, or withdraw assets. Goldstein accepts a permanent ban on marketing or selling retail products or services involving cryptocurrency transactions.
Settlement funds will be distributed to retail depositors who transferred cryptocurrency to Celsius before its July 2022 withdrawal freeze. Institutional creditors are addressed separately through the Celsius Chapter 11 bankruptcy proceedings. Mashinsky separately faces criminal charges brought by the US Department of Justice; that case remains pending and is independent of this civil settlement.
The settlement contains a carve-out allowing the defendants to engage in limited crypto-related activities outside the banned marketing and sales functions. The individual payment amounts reflect equitable monetary relief, not a criminal fine. The FTC may seek additional relief if the defendants violate the settlement terms.
Licentium advises crypto platforms and digital asset businesses on consumer protection compliance, regulatory enforcement response, and FTC Act obligations. Work we undertake includes consumer disclosure programme review, regulatory enforcement defence strategy, AML/compliance programme assessments, and cross-border regulatory mapping for crypto businesses operating in the US.
Source: FTC, 'Founders of Celsius Network Ordered to Pay $16.5 Million to Resolve FTC Charges,' 20 July 2026