Roni Cohen-Pavon Pleads Guilty and Cooperates with Authorities
Roni Cohen-Pavon, the former chief revenue officer of Celsius Network, a bankrupt crypto lender, has reportedly pleaded guilty to four charges. One of the charges involves manipulating the price of Celsius’s native token, CEL. Cohen-Pavon entered his guilty plea in the United States District Court of Manhattan and has agreed to assist the US Attorney’s office and the Federal Bureau of Investigation (FBI) with their investigations.
Celsius Executives Respond Differently to Charges
Alex Mashinsky, the CEO of Celsius Network, previously pleaded not guilty to fraud charges. He is facing seven criminal counts, including wire fraud and securities fraud. Prosecutors allege that Mashinsky orchestrated a scheme that earned him $42 million by exploiting customers. These charges were brought against him and Cohen-Pavon after they were accused by the Securities and Exchange Commission (SEC) of market manipulation and wire fraud for artificially boosting CEL’s price.
The Bear Market Leads to Celsius’s Collapse
The SEC also claimed that both Mashinsky and Cohen-Pavon sold their holdings just before Celsius collapsed in July 2022. The Department of Justice (DOJ), Commodities Futures Trading Commission (CFTC), Federal Trade Commission (FTC), and the US Government have filed similar charges against Celsius and Mashinsky. The FTC has fined Celsius $4.7 billion and prohibited them from engaging in trading activities. However, Mashinsky has declined to accept the FTC settlement.
Celsius’s Decline Amidst the Bear Market
Celsius experienced a decline following the peak of the bull market in 2021 when many crypto companies offered high yields on digital asset loans. However, with the bear market in 2022, several crypto-lending firms, including Celsius, declared bankruptcy. This has left millions of dollars belonging to users trapped on these platforms.
Hot Take: The Fallout from Celsius’s Collapse
The guilty plea from Roni Cohen-Pavon and the ongoing investigations into Celsius Network highlight the risks and consequences of fraudulent activities in the cryptocurrency industry. It serves as a reminder that regulatory bodies are actively monitoring and taking action against those who manipulate markets or engage in fraudulent behavior. The collapse of Celsius and other crypto-lending firms during the bear market underscores the importance of due diligence and caution when participating in such platforms. Users should be wary of promises of high yields and thoroughly research any company before entrusting their funds.
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