Celsius founders face permanent crypto bans that could cost more than their $16.5M obligations

Here is the latest from the digital-asset markets: The co-founders of Celsius, the bankrupt crypto lender, are now subject to permanent court orders that bar them from broad parts of the crypto and asset-services business. The FTC put the founders’ combined obligations at $16. 5 million, though Goldstein’s entered order lists $2.

Alexander Mashinsky and Shlomi Daniel Leon may not advertise, market, promote, offer or distribute products or services used to deposit, exchange, invest or withdraw assets, or assist in those activities. Mashinsky's order covers assets generally, while Leon's expressly covers cryptocurrency, banking and financial assets. Both bans apply whether they act directly or through an intermediary.

Market Dynamics

Goldstein's order focuses on retail crypto. He may not advertise, market, promote, or offer for sale retail products or services used to buy, sell, deposit, withdraw, distribute, or trade cryptocurrency, or assist in those sales and marketing activities. Related Reading Federal Trade Commission settles with Celsius for $4.

7B fine; permanently bans company from all trading activities Co-founders Alex Mashinsky, Shlomi Daniel Leon, and Hanoch Goldstein are not parties to the settlement and their cases will proceed in federal court. Jul 13, 2023 Oluwapelumi Adejumo All three orders also prohibit material misrepresentations about products and services. They bar obtaining or attempting to obtain customer information of a financial institution through false, fictitious, or fraudulent representations, including bank-account details, login credentials, private keys, and wallet information.

Mashinsky and Leon additionally must obtain express informed consent before disclosing consumers' nonpublic personal information. Those restrictions track the conduct alleged in the FTC's 2023 complaint. The agency alleged Celsius was marketed as safer than a bank, promised withdrawals at any time, and advertised yields as high as 18.

Market Impact

It also alleged the company claimed it had sufficient reserves on June 7, 2022, five days before freezing withdrawals and transfers. Celsius filed for bankruptcy on July 13, 2022. Related Reading Former Celsius CEO Alex Mashinsky receives 12 years in prison over fraud scheme The sentencing closes the federal prosecution chapter, but Mashinsky still faces bankruptcy and related civil litigation.

May 8, 2025 Gino Matos The bans follow the founders beyond Celsius and cover assistance they provide to others. Mashinsky and Leon’s orders also extend to work performed through intermediaries. For years, the founders must file reports and keep records, giving the FTC a trail to follow and the court grounds to enforce the injunctions.

The orders apply to these three founders and show how consumer-protection cases can place lasting limits on marketing custody, yield, and trading products. Payments through DOJ forfeiture and Celsius bankruptcy settlements count toward the $16. 5 million obligations.

This shift continues to shape the digital-asset landscape, with analysts examining its near-term effects.