Former Celsius Executive Pleads Guilty to Fraud and Price Manipulation, Legal Proceedings Continue
Summary:
Former Celsius executive pleads guilty to charges of fraud and price manipulation, while restitution is required. Co-founder denies all charges, as legal proceedings continue. Assets frozen, bankruptcy case ongoing.
Former chief revenue officer of cryptocurrency lending firm Celsius, Roni Cohen-Pavon, has entered a guilty plea for various charges related to fraud and price manipulation. The plea was made in the United States District Court for the Southern District of New York and includes charges of conspiracy to commit price manipulation, securities fraud, manipulation of security prices, and wire fraud. Cohen-Pavon will remain free on bail until his scheduled sentencing hearing on December 11. As part of the plea agreement, he will be required to provide restitution to those affected by the collapse of Celsius. Reuters reports that former CEO Alex Mashinsky allegedly made approximately $42 million in profits by artificially inflating the price of the CEL token, while Cohen-Pavon earned around $3.6 million. Charges were announced against both executives by the U.S. Justice Department in July. Cohen-Pavon's location was previously unknown as he is a resident of Israel. Mashinsky, on the other hand, pleaded not guilty to all charges and is currently free on a $40-million bond. In the midst of legal proceedings, a federal judge granted permission to freeze some of Mashinsky's assets, including specific bank accounts and a property in Austin, Texas. Lawyers representing Mashinsky recently filed a motion seeking the dismissal of the Federal Trade Commission's case against him, arguing that the allegations do not meet the required standards for a claim. The bankruptcy case of Celsius Network, which was filed in July 2022, is still ongoing, and a proposed settlement plan is set to be reviewed by a bankruptcy judge in October.
Published At
9/14/2023 7:28:15 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.