Former Celsius Network executive pleads guilty

Former Celsius Network chief executive Roni Cohen-Pavon pleaded guilty to four counts, including fraud and price manipulation. The plea agreement with prosecutors provides for restitution to victims. The former top executive will be released on bail ahead of a December 11 hearing. Reuters.

Authorities charged Cohen-Pavon in July. Former Celsius Network CEO Alex Mashinsky faced seven counts. According to investigators, they profited from manipulating CEL by more than $43 million.

Earlier, Bloomberg reported that law enforcement had arrested Mashinsky. However, according to Reuters, on July 14 the former head of the company appeared in court in everyday clothes and without handcuffs. He did not plead guilty to any of the charges.

Judge Anna Wang said Mashinsky would be released on $40 million bail secured by his Manhattan residence.

In June 2022, Celsius halted withdrawals, exchanges and transfers between accounts “due to extreme market conditions.”

Following the filing for bankruptcy, the company reported a balance-sheet hole of $1.2 billion. In August it emerged that its liabilities exceeded assets by $2.85 billion.

In the autumn, platform chief Alex Mashinsky left the post of CEO. Later, the New York Attorney General accused him of deceiving investors “by billions of dollars.”

In September 2023, a court ordered the freezing of Mashinsky’s assets for the duration of the criminal proceedings.