The regulatory fallout from the Celsius collapse has reached its final chapter — at least as far as the Federal Trade Commission is concerned. Two more of the platform’s co-founders have now settled with federal regulators, closing a case that once seemed almost impossibly large in scope, given that customers lost access to roughly $4.7 billion when the crypto lending giant imploded in the summer of 2022.

Key takeaways

• Celsius co-founders Shlomi Daniel Leon and Hanoch “Nuke” Goldstein agreed to pay a combined $6.5 million to settle FTC fraud charges.
• A $4.72 billion judgment was entered against both Leon and Goldstein, mostly suspended as long as they comply with settlement terms.
• The FTC accused Celsius of falsely claiming deposits were covered by a $750 million insurance policy while secretly making $1.2 billion in unsecured loans.
• Former CEO Alex Mashinsky separately settled for $10 million and was sentenced to 12 years in prison in May 2025.
• Creditor recovery reached nearly 65% of eligible claims as of August 2025, following multiple distributions.

FTC Settlements and Financial Penalties for Celsius Founders

The Celsius FTC settlement involving the two remaining co-founders brings the total paid by all three named executives to $16.5 million. That figure, while significant for individuals, sits in stark contrast to the billions lost by ordinary customers — a detail that underscores the persistent gap between regulatory penalties and the actual scale of harm in major...

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