Celsius Fallout: Co-founders Ordered to Pay Over $6M to FTC
Former Celsius co-founders Shlomi Daniel Leon and Hanoch “Nuke” Goldstein have been ordered to pay over $6 million to settle FTC charges regarding the misrepresentation of platform safety. The legal action targets the executives for allegedly misleading users about the security of the Celsius lending platform prior to its catastrophic collapse.
This settlement intensifies the legal repercussions following the 2022 bankruptcy of Celsius, which left users with $4.7 billion in losses. By adding to the $10 million settlement previously reached with former CEO Alex Mashinsky, this ruling underscores the ongoing regulatory crackdown on crypto lending platforms and the accountability of high-level executives.
Goldstein, the firm’s former CTO, was ordered to pay $2.014 million under an order signed by US District Judge Denise Cote. Leon, the former chief strategy officer, was ordered to pay $4.1 million. These settlements extend the fallout from the 2022 collapse beyond former CEO Alex Mashinsky, who settled for $10 million in April. At its peak, the crypto lending platform held $25 billion in assets but owed users $4.7 billion when it filed for bankruptcy in July 2022.
This is a summarized and adapted version by Artificial Intelligence. To read the complete original story, visit the official source.
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