Part of Cohen-Pavon’s plea bargain requires him to compensate some of the victims of the Celsius collapse.
Roni Cohen-Pavon, the former chief revenue officer at the now-bankrupt crypto lender Celsius Network, has pleaded guilty to criminal charges against him. According to a Thursday report by Reuters, the former top executive has also agreed to work with prosecutors in their ongoing investigation into the firm.
Celsius Former Revenue Officer Admits to 4 Criminal Charges
Cohen-Pavon admitted to four charges bordering on price manipulation and fraud at a Wednesday hearing before the US District Judge John Koeltl in Manhattan.
As court documents reveal, Cohen-Pavon has pleaded guilty to conspiracy to commit price manipulation, securities fraud, manipulation of security prices and wire fraud. And while he awaits the sentencing hearing, which is set to take place on December 11, Cohen-Pavon, for now, will be free on bail.
Reuters also noted in the report that part of Cohen-Pavon’s plea bargain requires him to compensate some of the victims of the collapse of Celsius.
Recall that former CEO Alex Mashinsky allegedly made about $42 million in profits from manipulating the price of the Celsius (CEL) token. From the same artificial price inflation, Cohen-Pavon also reportedly made around $3.6 million.
Although the US Justice Department initially announced charges against the two former Celsius executives in July, Mashinsky has since pleaded not guilty to all charges. As a fact, Mashinsky currently walks free on a $40 million bail bond.
However, Coinspeaker recently reported that a New York court has allowed US authorities to freeze some of Mashinsky’s assets. That includes some of his bank accounts and a property he owns in Austin, Texas.
There’s also a Federal Trade Commission’s case against Mashinsky. However, his legal representation, on September 11, filed a motion seeking to have the court dismiss the case. They argued that the allegations did not meet the standards for a claim.
It might also be worth noting that Celsius Network’s bankruptcy case is still ongoing after it was filed in July 2022. However, a settlement plan is in the works and will be presented to a bankruptcy judge in October.
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