Former Celsius Executive’s Sentencing Halted as Mashinsky Strikes Deal

In a significant development in the legal saga surrounding Celsius Network, the sentencing of former Chief Revenue Officer Roni Cohen-Pavon has been delayed.
The ruling by United States District Court for the Southern District of New York Judge John Koeltl comes on the back of a guilty plea by ex-Celsius CEO Alex Mashinsky in relation to fraudulent activities pertaining to the now-bankrupt cryptocurrency lending company.
Having pled guilty earlier to several counts of conspiracy to commit commodities price manipulation and wire fraud among other securities frauds, sentencing for Cohen-Pavon had been slated for December 11, 2024. However, the prosecutors asked for a postponement in light of the relevance his testimony may have for the sentencing of Mashinsky slated for this April of 2025.
Judge Koeltl approved the request and scheduled a follow-up hearing for April 18, 2025, at which both the prosecution and Cohen-Pavon will present updates. This delay emphasizes Cohen-Pavon’s collaboration with authorities, which may influence the results of both cases.
Mashinsky Faces Serious Charges
Celsius’s creator and former CEO, Alex Mashinsky, entered a guilty plea to two charges of securities fraud and commodities fraud on December 3, 2024. These accusations were based on claims that he concealed his own goods at inflated rates, manipulated the price of Celsius, the platform’s native token, and misled investors about Celsius’s safety and profitability.
According to US Attorney Damian Williams, Mashinsky committed “massive fraud” since he “preyed on the trust of his retail investors by guaranteeing them their money was safe and would generate high returns.” As part of his plea deal, Mashinsky consented to the forfeiture of $48 million but could face up to 30 years in prison on each count upon conviction.
US Attorney Williams Announces Mashinsky Fraud Charges. Source: Bloomberg Television via Youtube.
Cooperation is part of Cohen-Pavon’s case: he was arrested in September 2023 and bailed for $500,000; he has since had the freedom to travel back and forth between Israel and the United States. Only as recently as September 2024 did he receive permission to travel to Singapore. Many speculated this meant he would appear at the Token2049 conference.
Although the details of Cohen-Pavon’s testimony remain under seal, legal experts say his perspective on Celsius’s inner workings could be crucial in sealing Mashinsky’s fate.
Celsius’s Downfall and Creditor Repayments
Celsius Network was one of the biggest crypto lenders until a market slump saw it blow up in July 2022. It had huge assets totalling about $25 billion at its height. The bankruptcy filings have left millions of users stranded, with billions of dollars locked in accounts on the platform.
In the preceding months, a bankruptcy court sanctioned a reorganization strategy that facilitates the allocation of $2 billion to creditors. The initial phase of payments took place in early 2024, whereby qualifying creditors were compensated in either Bitcoin or U.S. dollars. Additional distributions are anticipated by the year 2025.
The indictment against former Celsius executives highlights the dangers posed by unchecked practices in the cryptocurrency industry. Mashinsky’s guilty plea, together with Cohen-Pavon’s cooperation, points to an increasing amount of scrutiny coming from regulators and law enforcement.
These sentences, with dates set for April 2025, bring into question the need for much more transparency and accountability in the rapidly changing world of cryptocurrencies.
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