Two co-founders of the collapsed crypto lending platform Celsius Network have agreed to pay the Federal Trade Commission more than $6 million combined to settle claims tied to the company's downfall, adding to the regulatory reckoning that has already ensnared former CEO Alex Mashinsky.
## The Settlements Celsius co-founders Daniel Leon and Nuke Goldstein reached separate agreements with the FTC, together totaling over $6 million. The deals resolve allegations connected to how the lending platform marketed itself to customers before its 2022 implosion.
The payments come on top of the $10 million settlement that former chief executive Alex Mashinsky agreed to with the agency back in April. Together, the resolutions represent the FTC's continued effort to hold Celsius leadership accountable for one of the most high-profile failures of the last crypto downturn.
The co-founders' payments push the total FTC settlements from Celsius leadership well past the $16 million mark.
## Fallout From Celsius's Collapse Celsius froze customer withdrawals in mid-2022 and filed for bankruptcy shortly after, freezing billions of dollars in user funds. The platform had promised customers high yields on their deposited crypto, drawing scrutiny over whether those returns and the safety of user assets were accurately represented.
The company's failure became emblematic of the broader crypto contagion that year, contributing to a cascade of insolvencies across the industry. Regulators and prosecutors have pursued multiple avenues against former executives in the aftermath.
Key figures in the case include:
- Alex Mashinsky, former CEO, who settled with the FTC for $10 million
- Daniel Leon, co-founder, part of the new $6 million-plus resolution
- Nuke Goldstein, co-founder, also included in the latest settlement
The settlements mark another step in closing the regulatory chapter surrounding Celsius, even as affected customers continue to navigate the bankruptcy process to recover a portion of their lost funds.