Former Celsius Chief Revenue Officer Pleads Guilty to Four Criminal Charges in Federal Court

Ronnie Cohen Pavon

Ronnie Cohen Pavon, former Celsius’ chief revenue officer pleaded guilty to four criminal charges in federal court in Manhattan, New York.

Admission of Tampering with CEL Price

Cohen-Pavon admitted to tampering with a file market price of CEL, the primary cryptocurrency issued by the bankruptcy digital asset lender percentage.

Judgment Issued by US District Judge

Judgment on It was issued on September 13 by US District Judge John Koeltl, according to Reuters.

Sentencing Scheduled for December 11, 2024

After his conviction plea, Cohen was sentenced to Pavon set for December 11, 2024.

Fraud and Conspiracy Charges

The former CEO has been charged in July 2024 while it was federal prosecutors Celsius founder Alex Machinski was charged with Fraud and conspiracy.

Allegations of Artificially Inflating CEL Price

Lawyers from the Justice Department alleged that Mashinsky conspired with Cohen-Pavone to artificially inflate CEL price Misleading investors. Prosecutors also Ex Celsius said boss He defrauded customers and lied about the company’s finances.

Akin to a Ponzi Scheme

A report from an independent auditor appointed by the court found Celsius, under Mashinsky’s leadership, operated akin to a Ponzi scheme.

Executives Withdrew Millions Before Bankruptcy

Records released during a company’s bankruptcy proceedings in 2022 also found that many executives, including former The CEO withdrew millions From Celsius’ accounts shortly before the company filed bankruptcy papers.

Mashinsky’s Arrest and Asset Freeze

Mashinsky was arrested and later released. Court set On bail of $40 million and the administration of Justice (DoJ) has frozen many cases of for him assets Including companies assets at banking heavyweight Goldman Sachs.

Regulatory Lawsuits

Regulators, including the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the Federal Trade Commission (FTC), have sued Mashinsky, alleging violations of the law.

New York Attorney General’s Accusations

New York Attorney General Letitia James also Celsius founder accused of Broken condition rules. The court ordered Mashinsky to respond to the lawsuit on August 5.

Mashinsky’s Plea and Defense

Mashinsky has pleaded not guilty or denied the charges against for him for for him role in Celsius breakdown. His lawyers asked the court to dismiss the FTC case against Mashinsky, claiming that their client was wrongly accused.