Celsius founders face permanent crypto bans that could cost more than their $16.5M obligations
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 $2.014 million. 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. Mashinskys order covers assets generally, while Leons expressly covers cryptocurrency, banking and financial assets. Both bans apply whether they act directly or through an intermediary. Goldsteins 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. 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 FTCs 2023 complaint. The agency alleged Celsius