Federal prosecutors in New York are seeking a forfeiture judgment of over $1 million from Roni Cohen-Pavon, the former chief revenue officer of the bankrupt crypto lender Celsius, just days before his scheduled sentencing. In a court filing on Tuesday, U.S. Attorney for the Southern District of New York Jay Clayton stated that Cohen-Pavon has consented to a $1,070,000 judgment, representing proceeds traceable to his crimes.
Details of the forfeiture agreement
According to the filing, Cohen-Pavon will receive credit for any funds—whether in cash or cryptocurrency—that he held on the Celsius platform and that were paid out as part of the company’s bankruptcy proceedings. The agreement comes as part of a broader effort by authorities to recover assets obtained through fraudulent activity linked to the collapse of the once-prominent lending platform.
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Background of the case
Cohen-Pavon pleaded guilty in September 2023 to charges of fraud and conspiracy to commit price manipulation related to Celsius’s native token, CEL. His cooperation with prosecutors has been a key element of the case. In his filing, Clayton did not recommend a specific sentence but urged the judge to consider an appropriate reduction for a defendant who has provided substantial assistance. Cohen-Pavon is scheduled to appear for sentencing in the U.S. District Court for the Southern District of New York on Thursday.
Impact on the crypto industry
The collapse of Celsius in 2022 was one of the most significant bankruptcies in the cryptocurrency sector, triggered in part by the downfall of the Terra ecosystem. The event contributed to a broader crisis of confidence that led to the Chapter 11 filings of major exchanges like FTX. Former Celsius CEO Alex Mashinsky was sentenced to 12 years in prison in May 2025 after pleading guilty to commodities and securities fraud and agreed to a forfeiture of more than $48 million.
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Cohen-Pavon’s defense and cooperation
In April, Cohen-Pavon’s legal team requested that he be sentenced to time served, highlighting his cooperation agreement and his role in securing Mashinsky’s guilty plea. In a letter to Judge John Koeltl, Cohen-Pavon wrote, “I pleaded guilty because I am guilty. I participated in the manipulation of the CEL token. I did not stop it when I should have, and I did not leave when I could have. I take full responsibility for that.”
Conclusion
The case against Cohen-Pavon underscores the ongoing legal fallout from the Celsius collapse and the U.S. government’s efforts to hold executives accountable for fraud in the crypto industry. The forfeiture order, if approved, will mark another step in recovering funds for affected investors.
FAQs
Q1: What is Roni Cohen-Pavon being sentenced for?
He pleaded guilty to fraud and conspiracy to commit price manipulation related to Celsius’s CEL token.
Q2: How much money is the government seeking to forfeit?
The government is seeking a $1,070,000 judgment, representing proceeds traceable to his crimes.
Q3: What was the role of Celsius in the broader crypto collapse?
Celsius’s bankruptcy in 2022 was one of the largest in the crypto industry, contributing to a crisis that led to the collapse of other major firms like FTX.
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