Penalty Amount
$16,500,000
The FTC charged the founders of Celsius Network with deceiving consumers by falsely promising that cryptocurrency deposits were safe and always available. The founders agreed to pay $16.5 million and are banned from marketing or selling products that can be used to deposit or withdraw assets, among other restrictions.
Mashinsky must pay $10 million, Leon $4.1 million, and Goldstein $2.4 million. All three are banned from marketing or selling certain asset-related products and from making misrepresentations about any product or service. They are also prohibited from violating the Gramm-Leach-Bliley Act. Mashinsky and Leon are additionally barred from disclosing nonpublic personal information without express informed consent.
In-house legal teams should review vendor and customer agreements involving financial data handling to ensure compliance with the Gramm-Leach-Bliley Act, particularly clauses addressing the disclosure of nonpublic personal information and the requirement for express informed consent before sharing. They should also audit marketing and advertising contracts for representations about product safety and availability, ensuring they are accurate and not misleading. Additionally, contracts with service providers that handle deposits or withdrawals should include robust data security and accuracy representations, and indemnification provisions for deceptive practices.
Entity
Alexander Mashinsky, Shlomi Daniel Leon, and Hanoch Goldstein
Industry
Financial ServicesOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2026/07/founders-celsius-network-ordered-pay-165-million-resolve-ftc-charges
2223137celsiusnetworkcomplaint
https://www.ftc.gov/system/files/ftc_gov/pdf/2223137celsiusnetworkcomplaint.pdf
CelsiusNetworkLLC StipulatedOrder
https://www.ftc.gov/system/files/ftc_gov/pdf/CelsiusNetworkLLC-StipulatedOrder.pdf
StipulatedOrder(Leon)
https://www.ftc.gov/system/files/ftc_gov/pdf/StipulatedOrder%28Leon%29.pdf
Celsius Order
https://www.ftc.gov/system/files/ftc_gov/pdf/Celsius-Order.pdf
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"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"
"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."
"Violating the Gramm-Leach-Bliley Act"
"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"
"Proposed orders also ban defendants from marketing or selling products or services that can be used to deposit or withdraw assets"
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