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Former Celsius chief revenue officer Roni Cohen-Pavon has agreed to a $1.07 million forfeiture judgment after avoiding prison at his sentencing in the Celsius fraud case.
The judgment reflects proceeds prosecutors tied to Cohen-Pavon’s admitted crimes, according to court filings cited in market reports. The order would credit him for recoverable cash or crypto tied to his Celsius bankruptcy holdings.
$1.07M Forfeiture Follows Cooperation With Prosecutors
The forfeiture request came after prosecutors asked the court to take Cohen-Pavon’s cooperation into account. A prior filing said he provided “substantial assistance” to the government, including help in the case against former Celsius CEO Alex Mashinsky.
Prosecutors had declined to recommend a specific prison sentence before the May 13 hearing. Cohen-Pavon’s cooperation helped him avoid prison, while the forfeiture judgment would claw back proceeds tied to his role in the case.
2023 Guilty Plea Centered on CEL Manipulation
Cohen-Pavon pleaded guilty in September 2023 to fraud and conspiracy charges tied to manipulation of Celsius’s CEL token. Prosecutors said Cohen-Pavon and Mashinsky helped inflate CEL’s price while selling their own tokens at artificially high values.
The U.S. Attorney’s Office for the Southern District of New York had previously said both men were charged with conspiracy, securities fraud, market manipulation and wire fraud over the CEL scheme.
Mashinsky Sentence Shows Contrast in Celsius Case
Cohen-Pavon’s outcome contrasts with Mashinsky’s sentence. A federal judge sentenced the Celsius founder to 12 years in prison for fraud and market manipulation after prosecutors said he misled customers about Celsius’s financial health and helped rig CEL’s price.
Mashinsky was also ordered to forfeit $48.4 million. Celsius collapsed in 2022 after freezing withdrawals and filing for bankruptcy during the wider crypto lending crisis.
Celsius Criminal Case Nears Final Stages
Cohen-Pavon’s sentencing is one of the last major criminal proceedings tied to Celsius’s collapse. The case focused not only on the lender’s failure, but also on prosecutors’ claims that executives manipulated CEL before the bankruptcy.
For Cohen-Pavon, the key outcome is now clear. He avoided prison after cooperating with prosecutors, but still faces a $1.07 million forfeiture tied to his admitted role in the Celsius fraud case.
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Fhumulani Lukoto
Cryptocurrency Journalist
Fhumulani Lukoto holds a Bachelors Degree in Journalism enabling her to become the writer she is today. Her passion for cryptocurrency and bitcoin started in 2021 when she began producing content in the space. A naturally inquisitive person, she dove head first into all things crypto to gain the huge wealth of knowledge she has today. Based out of Gauteng, South Africa, Fhumulani is a core member of the content team at Coin Insider.