Two Celsius co-founders have been ordered to pay more than $6 million to the U.S. Federal Trade Commission to settle allegations tied to statements made before the crypto lender’s collapse. Hanoch “Nuke” Goldstein, the company’s former chief technology officer, must pay $2.014 million under an order signed Monday by U.S. District Judge Denise Cote. Shlomi Daniel Leon, Celsius’s former chief strategy officer, must pay $4.1 million under a separate order entered on June 29. According to the FTC, Celsius had claimed it held enough reserves to meet withdrawal demand, maintained $750 million in insurance covering customer deposits, and did not make unsecured loans. The agency alleged those claims were false and said executives continued to tell customers their deposits were safe just days before the company filed for bankruptcy. At its peak, Celsius held $25 billion in assets. When it filed for bankruptcy in July 2022, it owed users $4.7 billion. The orders also bar Leon and Goldstein from marketing certain retail financial and crypto trading products.
Two Celsius co-founders have been ordered to pay more than $6 million to the U.S. Federal Trade Commission, settling allegations that they misled customers about the platform’s safety before Celsius collapsed.
Hanoch “Nuke” Goldstein, Celsius’s former chief technology officer, must pay $2.014 million under an order signed Monday by U.S. District Judge Denise Cote. Shlomi Daniel Leon, the company’s former chief strategy officer, must pay $4.1 million under a separate order entered on June 29.
FTC said Celsius made false claims about reserves, insurance and lending
The FTC said Celsius had claimed it held enough reserves to meet withdrawal requests, maintained $750 million in insurance covering customer deposits, and did not issue unsecured loans.
The agency alleged those statements were false. It also said executives continued to tell customers their deposits were safe in the days before the company filed for bankruptcy.
Company held $25 billion in assets at its peak
Celsius held $25 billion in assets at its peak. When it filed for bankruptcy in July 2022, it owed users $4.7 billion.
The related orders also prohibit Leon from marketing or selling products or services used to deposit, exchange, invest in or withdraw assets. Goldstein is barred from marketing or selling retail products or services used to trade cryptocurrencies.
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