Celsius co-founders Shlomi Daniel Leon and Hanoch “Nuke” Goldstein were ordered to pay more than $6 million to settle Federal Trade Commission charges over allegations they misrepresented the security of Celsius’ platform before the company’s collapse.

Goldstein, Celsius’ former chief technology officer, was ordered to pay $2.014 million under the order signed on Monday by U.S. District Judge Denise Cote. Leon, the company’s former chief strategy officer, was separately ordered to pay $4.1 million he came in June 29.

The settlements extend the effects of Celsius’ 2022 collapse to former CEO Alex Mashinsky. The cryptocurrency lending platform, which had $25 billion in assets at its peak, owed its users $4.7 billion when it filed for bankruptcy in July 2022.

The order also prohibits Leon from marketing or selling products or services that can be used to deposit, exchange, invest or withdraw assets, the FTC said in a statement on Monday.

“Similarly, Goldstein has agreed to prohibit the marketing or sale of retail products or services that may be used to buy, sell, deposit, withdraw, distribute or trade cryptocurrency.”

Related: Mashinsky Celsius receives eternal CFTC clearing trading ban

FTC allegations against Celsius co-founders

The FTC alleged that Celsius falsely represented to customers that it had sufficient reserves to meet withdrawal requests, maintained a $750 million insurance policy covering customer deposits and did not make unsecured loans.

“However, the FTC found that the promises were false and that its executives continued to claim that customer deposits were safe in the days before the company announced its bankruptcy,” it said.

Mashinsky settles FTC case for $10 million

In April Maszinski agreed to a settlement with the FTC which permanently bars him from promoting asset-related products and requires him to pay $10 million as part of a broader, partially suspended $4.72 billion judgment.

Payments of $2.014 million and $4.1 million from Goldstein and Leon, respectively, will also be counted toward the $4.72 billion judgment. The judgments reflect the consumer harm alleged by the FTC.

Separately there was Mashinsky convicted to 12 years in prison in May 2025 after pleading guilty to charges of fraud in commodity and securities markets, with prosecutors alleging he misled Celsius’ clients about the company’s profitability, investment risk and the safety of client funds.

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