Celsius Founders Ordered to Pay $16.5 Million: What It Means If You Lost Money

What just happened with Celsius

If you deposited money on the crypto platform Celsius Network, this news is for you. On July 2026, the Federal Trade Commission announced that Celsius founder and former CEO Alexander Mashinsky and his business partners were ordered to pay a total of $16.5 million to resolve FTC charges.

The FTC said the founders deceived users by falsely promising that deposits would be safe and always available. Mashinsky must pay $10 million, Shlomi Daniel Leon must pay $4.1 million, and Hanoch Goldstein must pay $2.4 million.

The orders also ban the founders from marketing or selling products or services used to deposit or withdraw assets. When a judge signs these orders, they have the force of law.

Why the FTC went after them

In its July 2023 complaint, the FTC alleged that Celsius told consumers it was safer than a bank. The company said it earned profits at no risk to customers and that deposits were protected.

The FTC says those promises were false. It alleged Celsius claimed it had a $750 million insurance policy for deposits, that it had enough reserves to cover customers, and that its Earn program could pay rewards as high as 18% annual percentage yield.

According to the FTC, the executives kept telling customers their deposits were safe just days before Celsius filed for bankruptcy.

What this means if you lost money

This is an important point: the $16.5 million is a settlement to resolve FTC charges. It is not the same as a direct refund program, and the FTC announcement does not describe a claims process for former Celsius users.

Celsius filed for bankruptcy, and money owed to former customers is being handled through that separate bankruptcy case. If you had funds on Celsius, that court process is where recovery for account holders is being decided.

So the honest answer is: watch official channels. Do not assume a check is coming just because of this news, and do not let anyone rush you.

Protect yourself from copycat scams

When a big case like this makes the news, scammers often follow. They may contact former Celsius users and claim they can recover your money for an upfront fee. Be careful.

The FTC will never demand money, make threats, tell you to transfer funds, or promise you a prize. Any official refund from a government action is free to claim. You should never pay a middleman to get money that is owed to you.

OpenFinancial is not a government agency and cannot get you money faster. The safe path is always the official one, and it does not cost anything.

Frequently asked questions

Will I automatically get my money back from this settlement?

No. The $16.5 million is a settlement to resolve FTC charges, not a described refund program. Money owed to former Celsius customers is being handled through the separate bankruptcy case. Watch official FTC pages for any updates.

Do I have to pay to claim any Celsius money?

No. Any official government refund is free to claim. If someone asks for an upfront fee to recover your funds, that is a warning sign of a scam.

How much are the founders paying?

According to the FTC, Mashinsky must pay $10 million, Leon $4.1 million, and Goldstein $2.4 million, for a total of $16.5 million.

What should I do if someone contacts me about my Celsius funds?

Be cautious. The FTC will never demand money or promise a prize. Report suspicious contacts for free at ReportFraud.ftc.gov.