A former executive of the bankrupt crypto lending platform Celsius pleaded guilty to U.S. criminal charges and agreed to cooperate with prosecutors’ further investigations.
According to the source, a person named Roni Cohen-Pavon, former chief revenue officer at Celsius, admitted four charges out of seven during a hearing before U.S. District Judge John Koeltl in Manhattan on Thursday, court records showed.
It includes conspiring to manipulate the price of a security, in particular the CEL token. Furthermore, he bowed to support the U.S. Attorney’s office in Manhattan and the FBI with their investigations, as well as to provide testimony in court if required.
In July, Roni Cohen-Pavon and the former CEO of Celsius, Alex Mashinsky, were charged with market manipulation and wire fraud for artificially inflating CEL’s value. Allegedly, Mashinsky has generated over $42 million by selling their personal holdings. However, the court found him not guilty and freed him on a $40 million bond.
Cohen-Pavon, who is from Israel, was out of the country when the charges were made public, as mentioned by Damian Williams, the head federal prosecutor in Manhattan. He is currently not in custody and can travel between New York and Israel while out on a $500,000 bond.
According to Cohen-Pavon’s plea agreement, prosecutors might recommend a more lenient sentence for him if he cooperates, and his sentencing is scheduled for December 11, 2024.