Co-founders of Celsius ordered to pay FTC $6 million for misleading investors
The U.S. Federal Trade Commission (FTC) has concluded its proceedings against the co-founders of the bankrupt crypto lending platform Celsius Network. Shlomi Daniel Leon and Hanoch Goldstein are required to pay the regulator over $6 million as part of a settlement related to false claims about the platform's security.
Under the terms of the agreement, Leon will pay $4.1 million, and Goldstein will pay $2.014 million. Additionally, both founders are banned from promoting or selling any products or services related to digital asset and cryptocurrency operations. These payments will be credited toward a broader court judgment of $4.72 billion previously issued against the company Celsius.
Recall that the collapse of Celsius in 2022 was one of the most high-profile events in the crypto market, triggering a massive liquidity crisis in the decentralized finance sector. The platform attracted billions of dollars from retail investors by promising yields of up to 18% annually, but in reality, it used client funds for risky operations without proper disclosure of risks.
This FTC decision sets an important precedent for the entire industry. It demonstrates that regulators are prepared to hold top executives of crypto companies personally accountable, rather than limiting themselves to fines against legal entities. For the market, this is a signal: the era of irresponsible promises and opaque business models in crypto lending is coming to an end.