Roni Cohen-Pavon, the former Chief Revenue Officer (CRO) of Celsius, a cryptocurrency lending firm, has reportedly entered a guilty plea related to charges of fraud and price manipulation. According to documents filed on September 13 in the US District Court for the Southern District of New York, Cohen-Pavon pleaded guilty to several counts, including conspiracy to commit price manipulation, securities fraud, manipulation of securities prices, and wire fraud. He has been granted bail and will await sentencing, scheduled for December 11. As part of the plea agreement, Cohen-Pavon is obligated to provide compensation to those affected by the collapse of Celsius.
The case against Cohen-Pavon stems from charges brought by the US Justice Department in July, which also included allegations against another former Celsius executive. However, at the time of the charges, Cohen-Pavon's whereabouts, as an Israeli resident, were largely unknown . Former Celsius CEO Alex Mashinsky, who allegedly profited around $42 million from Celsius token sales, has pleaded not guilty to all charges and remains free on $40 million bail. During the legal proceedings, a federal judge permitted US authorities to freeze some of Mashinsky's assets , including specific bank accounts and a property located in Austin, Texas.
Cohen-Pavon's guilty plea sheds further light on the ongoing legal battles surrounding Celsius Network. The cryptocurrency lending platform filed for bankruptcy in July 2022, and the bankruptcy case was still active as of the latest reports. A proposed settlement plan unveiled in August is slated to be presented to a bankruptcy judge in October. The case has drawn significant attention due to the nature of the charges, the involvement of high-ranking executives, and the potential implications for the cryptocurrency lending industry.
