Penalty Amount
$16,500,000
The FTC charged the founders of Celsius Network with deceiving consumers by falsely promising that cryptocurrency deposits were safe and always available. The founders agreed to pay $16.5 million and are banned from marketing or selling products that can be used to deposit or withdraw assets, among other restrictions.
Mashinsky must pay $10 million, Leon $4.1 million, and Goldstein $2.4 million. All three are banned from marketing or selling certain asset-related products and from making misrepresentations about any product or service. They are also prohibited from violating the Gramm-Leach-Bliley Act. Mashinsky and Leon are additionally barred from disclosing nonpublic personal information without express informed consent.
In-house legal teams should review vendor and customer agreements involving financial data handling to ensure compliance with the Gramm-Leach-Bliley Act, particularly clauses addressing the disclosure of nonpublic personal information and the requirement for express informed consent before sharing. They should also audit marketing and advertising contracts for representations about product safety and availability, ensuring they are accurate and not misleading. Additionally, contracts with service providers that handle deposits or withdrawals should include robust data security and accuracy representations, and indemnification provisions for deceptive practices.
Entity
Alexander Mashinsky, Shlomi Daniel Leon, and Hanoch Goldstein
Industry
Financial ServicesOfficial Press Release
https://www.ftc.gov/news-events/news/press-releases/2026/07/founders-celsius-network-ordered-pay-165-million-resolve-ftc-charges
2223137celsiusnetworkcomplaint
https://www.ftc.gov/system/files/ftc_gov/pdf/2223137celsiusnetworkcomplaint.pdf
CelsiusNetworkLLC StipulatedOrder
https://www.ftc.gov/system/files/ftc_gov/pdf/CelsiusNetworkLLC-StipulatedOrder.pdf
StipulatedOrder(Leon)
https://www.ftc.gov/system/files/ftc_gov/pdf/StipulatedOrder%28Leon%29.pdf
Celsius Order
https://www.ftc.gov/system/files/ftc_gov/pdf/Celsius-Order.pdf
Federal Trade Commission Enforcement Page
https://www.ftc.gov/enforcement
"Alexander Mashinsky, the former CEO of cryptocurrency platform Celsius Network Inc. (Celsius), and his business partners, Shlomi Daniel Leon and Hanoch “Nuke” Goldstein"
"will pay a total of $16.5 million"
"The settlement orders with the FTC require Mashinsky to pay $10 million, Leon to pay $4.1 million and Goldstein to pay $2.4 million."
"Violating the Gramm-Leach-Bliley Act"
"the FTC alleged that Celsius and its co-founders promised consumers that Celsius was “safer” than a bank or other traditional financial institutions and misrepresented that their deposits were safe"
"Proposed orders also ban defendants from marketing or selling products or services that can be used to deposit or withdraw assets"
The FTC, along with Utah and California, filed a complaint against Hims & Hers alleging the telehealth provider shared consumers' sensitive health information with third-party advertising platforms without consent, and deceived consumers about billing and cancellation practices. The complaint alleges violations of the FTC Act and the Restore Online Shoppers' Confidence Act.
$300K
The FTC alleged that Elite Events and Tickets LLC, doing business as Smart Scalpers, violated the Better Online Ticket Sales Act by circumventing security measures to bypass ticket purchase limits for over 2,400 events, reselling tickets at a profit. The proposed order requires payment of $300,000 (with a total penalty of $10.7 million partially suspended) and permanently prohibits the company and its owners from engaging in such circumvention tactics.
$45.9M
The FTC permanently banned Dennise Merdjanian from the debt relief industry and telemarketing after she and Superior Servicing LLC allegedly ran a student loan forgiveness scam that took more than $45.9 million from consumers. The proposed stipulated order imposes a partially suspended monetary judgment and resolves the FTC's litigation against the remaining defendants.
$750K
The FTC finalized a settlement with Vanilla Chip LLC (doing business as TruHeight) and its principals over allegations that they deceptively advertised height-enhancing supplements for children and teenagers without competent and reliable scientific evidence. The FTC also alleged that TruHeight used fake social media bot profiles and relied on reviews written by employees, vendors, or consumers who received free products or discounts for 5-star reviews. Under the final order, TruHeight must pay $750,000 and is barred from making unsupported health claims or misrepresenting reviews.
$2.3M
The FTC alleged that RentGrow, a tenant screening company, violated the FCRA by failing to use reasonable procedures to ensure the accuracy of its consumer reports, failing to disclose sources of data, and mishandling consumer disputes. RentGrow agreed to pay a $2.25 million penalty and is prohibited from further violations.
The FTC and New York Attorney General took action against Handy Technologies for deceptive earnings claims and failure to disclose fees and fines that led to millions of dollars being withheld from workers' wages. The FTC is sending over $2.7 million in refunds to 62,893 affected consumers.