Shocking: Celsius Network’s CRO Pleads Guilty to Crypto Manipulation

The Celsius Network, once a shining star in the cryptocurrency world, witnessed a meteoric rise during the COVID-19 pandemic, only to come crashing down in 2022, mirroring the fate of many other companies.

However, the latest revelation has put the spotlight on Roni Cohen-Pavon, the former chief revenue officer of Celsius Network, who has confessed to a series of serious criminal charges in the United States, shedding light on questionable practices within the crypto industry.

Cohen-Pavon Pleads Guilty

Cohen-Pavon’s admission encompasses the manipulation of the CEL token’s price, as well as multiple counts of securities fraud and wire fraud. These shocking disclosures emerged during a Manhattan-based hearing presided over by U.S. District Judge John Koeltl.

In a similar case, Sam Bankman-Fried, the former head of FTX, is also battling legal authorities, maintaining his innocence.

The Cryptocurrency Boom and Bust

During the COVID-19 pandemic, platforms like Celsius, offering lucrative crypto lending services, witnessed a significant surge in popularity. They attracted depositors with promises of high interest rates and easy access to loans, even lending tokens to prominent institutions in pursuit of maximum profit. However, Celsius’s fortunes took a nosedive, characterized by a sharp increase in customer withdrawals coinciding with a cryptocurrency market downturn, which sent shockwaves throughout the industry.

But Celsius was not the only casualty; several crypto firms, including the FTX exchange, found themselves declaring bankruptcy. The swift and unpredictable fluctuations 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.