US Seeks $1M Forfeiture from Ex-Celsius Exec Ahead of Sentencing

The US government has requested a forfeiture judgment of approximately $1 million from Roni Cohen-Pavon, the former chief revenue officer of the defunct cryptocurrency lending platform Celsius. This legal action precedes his sentencing hearing in the US District Court for the Southern District of New York. Cohen-Pavon pleaded guilty in September 2023 to fraud and conspiracy to commit price manipulation involving Celsius’s native CEL token. In a recent court filing, US Attorney Jay Clayton stated that Cohen-Pavon consented to a $1,070,000 judgment, representing proceeds traceable to his crimes, with credit given for funds already paid during Celsius's bankruptcy proceedings. While no specific sentence was recommended, prosecutors asked the judge to consider a reduction due to Cohen-Pavon's substantial assistance, which reportedly aided in the conviction of former CEO Alex Mashinsky. Defense lawyers have requested a sentence of time served, citing his cooperation and acceptance of responsibility. The case is part of the broader fallout from Celsius's 2022 collapse, a significant event in the crypto industry that triggered widespread bankruptcies, including that of FTX.