Federal Authorities Seek Reduced Sentence for Former Celsius Executive Based on Cooperation
Roni Cohen-Pavon's defense team has requested time served, but US Attorney Jay Clayton avoided specifics in the government's sentencing recommendation, asking the judge to follow established sentencing guidelines.
US federal prosecutors have filed a recommendation for a lenient sentence for Roni Cohen-Pavon, who previously served as the chief revenue officer at the now-defunct cryptocurrency lending platform Celsius.
Through a letter submitted on Monday to the US District Court for the Southern District of New York (SDNY), US Attorney Jay Clayton highlighted Cohen-Pavon's "substantial assistance" provided to federal authorities, particularly his readiness to provide testimony against Alex Mashinsky, the former chief executive officer of Celsius.
Federal prosecutors chose not to specify a particular prison term for the former chief revenue officer, and instead requested that the judge take into account the sentencing guidelines when determining an "appropriate sentencing reduction for a defendant who has rendered substantial assistance."
"As soon as he pled guilty, Cohen-Pavon's cooperation was public and known to Mashinsky. Cohen-Pavon's cooperation was likely a significant factor in Mashinsky's decision to plead guilty a few months prior to his January 2025 trial date."
Jay Clayton, US Attorney
In September 2023, Cohen-Pavon entered a guilty plea to charges of fraud and conspiracy to commit price manipulation in connection with Celsius's CEL token, stemming from his involvement in the crypto lending platform's operations that ultimately caused billions of dollars in losses when the firm went under in 2022. Originally scheduled for sentencing on May 7 before Judge John Koeltl, the hearing was rescheduled by the judge on Monday to May 13.
Alex Mashinsky, who served as the public face of Celsius and was among the most high-profile personalities in the cryptocurrency sector during that period, received a 12-year prison sentence in May 2025 following his guilty plea to commodities and securities fraud charges. Numerous industry experts viewed the downfall of Celsius as closely connected to the 2022 cryptocurrency market crash that led to the failure of multiple exchanges, including FTX and Voyager Digital.
Ahead of his sentencing hearing, Cohen-Pavon's legal team filed a request for time served, stating that the former Celsius executive accepted "full responsibility for his conduct and the harms caused by his participation in the CEL token manipulation scheme."
No new trial for former FTX CEO
The upcoming sentencing hearing, which is anticipated to conclude the criminal proceedings tied to Celsius, will follow another SDNY federal judge's decision to deny a request for a new trial from Sam Bankman-Fried, the former CEO of FTX. Bankman-Fried, commonly referred to as SBF, requested a new trial on the grounds that Judge Lewis Kaplan, who presided over his 2023 trial, demonstrated "manifest prejudice" throughout the court proceedings. He continues to wait for a decision on his motion to have his conviction and sentence overturned in appellate court.