The former chief revenue officer of crypto lending company Celsius, Roni Cohen-Pavon, has pleaded guilty to allegations of fraud and pricing manipulation.
Former Celsius Executive Pleaded Guilty To Charges Of Fraud And Price Manipulation
The former chief revenue officer of crypto lending company Celsius, Roni Cohen-Pavon, has pleaded guilty to allegations of fraud and pricing manipulation. On September 13, the plea was entered in the United States District Court for the Southern District of New York. Cohen-Pavon admitted guilt to conspiracy to commit price manipulation, securities fraud, security price manipulation, and wire fraud. He's been released on bond until his sentencing hearing on December 11.
The US Justice Department announced accusations against both former Celsius executives in July. Cohen-Pavon's location as an Israeli resident was generally unknown at the time. Mashinsky has pleaded not guilty to all counts and is being held on a $40 million bond.
The guilty plea followed an arrangement with prosecutors that required Cohen-Pavon to make reparations for those harmed by Celsius's failure. Former CEO Alex Mashinsky allegedly profited around $42 million from the sale of Celsius' CEL token by artificially increasing its price, while Cohen-Pavon profited approximately $3.6 million.
While the legal processes continue, a federal judge has ordered that some of Mashinsky's assets be frozen, including specified bank accounts and a property in Austin, Texas. Meanwhile, lawyers for Mashinsky have filed a move to dismiss the Federal Trade Commission's lawsuit, alleging that the claims do not meet the requirements for a claim.
Celsius Network's bankruptcy case, initiated in July 2022, is still ongoing. A proposed settlement plan is set to be reviewed by a bankruptcy judge in October.
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