Former executive of Celsius Network, Cohen-Pavon, admits guilt
A Formidable Fall from Grace: Roni Cohen-Pavon Admitted Guilt in Crypto Manipulation Case
In a surprising turn of events, Roni Cohen-Pavon, once a top executive at the now-bankrupt cryptocurrency lender Celsius Network, has own up to his crimes in the United States.
Crucially, Cohen-Pavon has also decided to team up with the investigators as they delve deeper into their ongoing probe.
Cohen-Pavon's Guilty Plea
At a hearing held on Wednesday before U.S. District Judge John Koeltl in Manhattan, Cohen-Pavon 'fessed up to four charges, including orchestrating the manipulation of the crypto token CEL's value, as revealed in court records published on Thursday.
With his guilty plea, Cohen-Pavon has pledged to assist the U.S. attorney's office in Manhattan and the FBI in their investigations, and he is prepared to appear in court if needed, as stipulated in his plea agreement.
Due to Cohen-Pavon's cooperation, prosecutors may appeal to Judge Koeltl to take his assistance into account during Cohen-Pavon's Dec. 11, 2024, sentencing, which could significantly impact the ongoing investigation into cryptocurrency market manipulation.
The charges against Cohen-Pavon and Celsius Network's founder, Alex Mashinsky, were initially levied in July. Both were accused of market manipulation and wire fraud, specifically tied to artificial inflation of the CEL token's value and selling their personal stashes just before Celsius Network's demise in July 2022.
While Cohen-Pavon has admitted guilt, Mashinsky has maintained his innocence and was released on a $40 million bond. According to Damian Williams, the chief federal prosecutor in Manhattan, Roni Cohen-Pavon, an Israeli citizen, was not in the country when the charges were filed against him. He is at present released on a $500,000 bond and is permitted to travel between New York and Israel.
The Crypto Lenders' Domino Effect
Celsius Network's downfall serves as a stark reminder of the difficulties that crypto lending platforms encountered during the COVID-19 pandemic. These platforms attracted depositors with the allure of easy loan access and high interest rates but ultimately found themselves lending tokens to institutional investors for a profit. When cryptocurrency prices plummeted, Celsius Network faced numerous customer withdrawals, ultimately leading to its collapse.
Celsius Network's downfall marked one of the earliest instances of cryptocurrency-related bankruptcies, with others, such as the FTX exchange, also grappling with financial difficulties as crypto markets experienced dramatic volatility.
Notably, the office of Damian Williams has brought charges against several other crypto industry executives for fraud, including FTX founder Sam Bankman-Fried, who 'pled' not guilty and has a trial scheduled for Oct. 3, 2023.
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- Cohen-Pavon's guilty plea, in a crypto-related manipulation case, occurred on Wednesday before U.S. District Judge John Koeltl in Manhattan.
- The plea agreement stipulates that Cohen-Pavon will assist the U.S. attorney's office and the FBI in their investigations, and he is prepared to appear in court if needed.
- Prosecutors may use Cohen-Pavon's cooperation to influence his sentencing, which is scheduled for Dec. 11, 2024.
- The general news and crime-and-justice sectors have been abuzz with reports of Cohen-Pavon's involvement in the blockchain technology-driven finance scene.
- The downfall of Celsius Network, a crypto lending platform, serves as a reminder of the vulnerabilities in the crypto and blockchain industry, particularly during times of market volatility.
