Celsius Co-Founders to Pay $6.5M to Settle FTC Fraud Claims
Celsius co-founders Shlomi Leon and Nuke Goldstein agreed to pay $6.5 million to resolve FTC charges over false statements regarding customer fund safety. The settlement closes the agency's fraud investigation into the bankrupt lending platform.
Key Takeaways
- 1## Settlement Terms Celsius co-founders Shlomi Leon and Nuke Goldstein will pay $6.
- 25 million jointly to settle Federal Trade Commission allegations that they made materially false claims about the safety and custody of customer funds, according to the FTC.
- 3The settlement resolves fraud charges brought against the two executives following Celsius Network's bankruptcy filing in June 2022.
- 4## Background and Investigation The FTC had investigated Celsius's public statements to users, alleging the platform misrepresented how customer deposits were protected and stored.
- 5Celsius Network, once valued at $3 billion, suspended withdrawals in June 2022 amid liquidity pressures and subsequently filed for Chapter 11 bankruptcy.
Settlement Terms
Celsius co-founders Shlomi Leon and Nuke Goldstein will pay $6.5 million jointly to settle Federal Trade Commission allegations that they made materially false claims about the safety and custody of customer funds, according to the FTC. The settlement resolves fraud charges brought against the two executives following Celsius Network's bankruptcy filing in June 2022.
Background and Investigation
The FTC had investigated Celsius's public statements to users, alleging the platform misrepresented how customer deposits were protected and stored. Celsius Network, once valued at $3 billion, suspended withdrawals in June 2022 amid liquidity pressures and subsequently filed for Chapter 11 bankruptcy. The collapse left customers unable to access over $4 billion in crypto holdings.
Why It Matters
For Traders
Celsius remains in bankruptcy proceedings; this settlement does not affect ongoing customer fund recovery timelines or claim distribution amounts.
For Investors
The FTC action reinforces enforcement precedent that misstatements to retail users about custody and fund safety carry direct liability for founders, not just the company.
For Builders
Platforms handling user deposits must maintain precise, legally defensible disclosures about fund custody, insurance coverage, and risk; vague reassurances create FTC enforcement exposure.
