Celsius Network's Chief Revenue Officer Pleads Guilty to Crypto Manipulation – Coinpedia Fintech News
Celsius boomed during the COVID period and soon after that, it collapsed in 2022 like many other companies. The latest scoop is on Roni Cohen-Pavon, the former chief revenue officer of the now-defunct Celsius Network, who has pleaded guilty to a series of severe U.S. criminal charges, shedding light on dubious practices within segments of the crypto industry.
His admission included manipulating the price of the CEL token, along with counts of securities fraud and wire fraud. These revelations emerged after a Manhattan-based hearing led by U.S. District Judge John Koeltl. In a similar case, Former FTX head Sam Bankman-Fried is also fighting with the authorities for not guilty.
Cohen-Pavon Pleads Guilty: A Quartet of Charges
Platforms like Celsius, offering lucrative crypto lending services, went uphill in the COVID-19 pandemic, attracting depositors with high interest rates and easy access to loans. To generate max profit they started lending tokens to big institutions. However, Celsius faced a turbulent downfall marked by a surge in customer withdrawals coinciding with a cryptocurrency market decline, sending ripples through the industry.
But Celsius wasn’t the sole entity affected; several crypto firms, including the FTX exchange, declared bankruptcy. Swift and unpredictable changes in crypto prices and interest rates drew heightened scrutiny from regulatory bodies.
Mashinsky says he is not guilty…..
Looking at the broader trajectory of Cohen-Pavon’s cooperation will assist the U.S. Attorney’s office in Manhattan and the FBI in ongoing investigations. This transpired soon after the prosecutors revealed that Alex Mashinsky, Celsius’s former CEO, allegedly gained $42 million from suspicious sales. Despite the allegations, Mashinsky maintains his innocence and is currently free on a substantial $40 million bond.
Bail and Sentencing
The court has framed bail and sentencing both in the case. Manhattan’s federal prosecutor, Damian Williams, noted Cohen-Pavon’s prior absence from the country. He has been granted bail set at $500,000 and is permitted to travel between New York and his home country, Israel.
However, the impact of Cohen-Pavon’s cooperation on his sentencing, scheduled for December 11, 2024, remains to be seen. As the crypto world continues to evolve, stakeholders are keenly awaiting the trial’s outcome. The case underscores the growing importance of compliance and transparency in the crypto industry.
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