The FTC alleged that Celsius falsely told customers their deposits were safe, that the platform was safer than a bank, and that it held a US$750 million insurance policy for deposits.

Why this label

A material part is supported, but one specific point rests on allegations settled by consent. The FTC alleged Celsius falsely told customers deposits were safe and always available and that the firm was safer than a bank^S6. The criminal plea backs the core point that Mashinsky misled customers about the safety of their assets^S2, and the CFTC made the same safety allegation^S5. The separate claim that Celsius falsely advertised a US$750 million insurance policy comes from the FTC and was resolved through stipulated orders^S6. A stipulated order is a consent resolution, not a contested court finding, so that specific point is not independently proven.

Current procedural position

FTC stipulated orders announced 20 July 2026 require the three founders to pay US$16.5 million total, with Mashinsky owing US$10 million. The order against Goldstein was proposed and needed court approval^S6.

Evidence score: 85 of 100

The score grades how well the record establishes this assessment. It is not a score of Celsius Network LLC. Score = source authority + directness + corroboration + procedural accuracy + currency + reproducibility.

Timeline

1. 13 July 2023FTC files complaint alleging deceptive safety claims against Celsius and founders^S6
2. 20 July 2026FTC orders founders to pay US$16.5 million and accept bans^S6

Related cases

• FTC v. Mashinsky, Leon and GoldsteinUS Federal Trade Commission. Regulatory. Not published.Stage: Stipulated orders entered. One proposed order needed court approval^S6.
  • 20 July 2026 Founders ordered to pay US$16.5 million and accept marketing bans^S6

Revision history

• 25 October 2026 Assessment first published with label Partly supported.

Have a record that changes this assessment? See corrections and responses.

Sources

1. S6Tier A Founders of Celsius Network Ordered to Pay $16.5 Million to Resolve FTC ChargesUS Federal Trade Commission. Regulator press release. 20 July 2026.Supports the deceptive marketing allegations and the US$16.5 million orders and bans. The orders are stipulated, not contested findings.
2. S5Tier A CFTC Charges Alexander Mashinsky and Celsius Network, LLC with Fraud and Material Misrepresentations in Massive Commodity Pool Scheme Involving Digital Asset CommoditiesUS Commodity Futures Trading Commission. Regulator press release. 13 July 2023.Supports the safety misrepresentation allegation and the collapse. The charges were civil allegations at this date.
3. S2Tier A Celsius Founder And Former CEO Alexander Mashinsky Pleads Guilty To Multi-Billion Dollar Fraud And Market Manipulation SchemesUS Attorney's Office, Southern District of New York. Government press release. 3 December 2024.Supports the guilty plea to commodities fraud and securities fraud and the CEL price support using customer money.

Other claims about Celsius Network LLC

• Supported93
  The US Department of Justice said Celsius founder Alexander Mashinsky pleaded guilty to commodities fraud and securities fraud and was sentenced to 12 years in prison in May 2025.
  Regulator statement, 8 May 20252 records citedFraud
• Supported90
  The SEC and the US Department of Justice said Celsius and Mashinsky manipulated the price of the CEL token through undisclosed buybacks funded in part with customer money.
  Regulator statement, 13 July 20233 records citedMarket conduct
• Supported74
  Celsius said it emerged from Chapter 11 bankruptcy on 31 January 2024 after freezing customer withdrawals in 2022.
  Company statement, 27 March 20242 records citedCorporate status