Co-founders of Celsius ordered to pay FTC $6 million for misleading customers
The regulatory consequences of the Celsius Network collapse continue to impact the platform's former leadership. The U.S. Federal Trade Commission (FTC) has obtained a court order requiring the company's co-founders to pay a total of over $6 million in compensation for misleading statements about the service's security.
According to the verdict, Shlomi Daniel Leon must pay $4.1 million, and Hanoch Goldstein must pay $2.014 million. In addition to the financial penalties, both executives have been personally banned from promoting or selling any products or services related to asset and cryptocurrency operations. This means their entrepreneurial activities in the crypto sphere are effectively paralyzed for an indefinite period.
It is important to note that these payments are not independent fines but are counted as part of a much larger $4.72 billion settlement. This comprehensive FTC decision covers claims against the entire Celsius ecosystem, including the company itself and its key executives. Thus, Leon and Goldstein bear personal responsibility for a portion of the collective damage inflicted on investors.
My analysis: This FTC decision is not just another fine but a clear signal to the market that regulators are making no allowances for the "innovative nature" of crypto projects. Personal liability for founders, even if the company is already in bankruptcy proceedings, is becoming the standard. For the industry, this means that loud promises of security and profitability will now be scrutinized not only by market mechanisms but also by strict legal precedents.