Celsius Case: The Mashinsky Agreement Delays the Cohen-Pavon Sentencing

The sentencing of Roni Cohen-Pavon, former director of revenue of Celsius, has been indefinitely postponed following the guilty plea of former CEO Alex Mashinsky with federal prosecutors.

The Legal Move that Changed Everything

Originally scheduled for December 11, the sentencing hearing is now pushed back until after Mashinsky's in April 2025. Prosecutor Damian Williams argued that Cohen-Pavon's testimony could be crucial in determining the sentence for the former CEO. Judge John Koeltl approved the delay and ordered both parties to appear on April 18 for an update.

What Could Mashinsky Face?

By pleading guilty to two charges, Mashinsky could face up to 30 years in prison ( with consecutive sentences ). Cohen-Pavon has already pleaded guilty to four counts of fraud, including price manipulation and electronic fraud.

The Triangle of Power

Both executives were accused in July 2023 of deceiving Celsius users to maximize profits. But here comes the interesting part: Cohen-Pavon, who was outside the U.S. when indicted, was finally arrested in September 2023 and changed his plea to guilty. Now, while awaiting sentencing, he has been enjoying relatively broad freedom of movement, even traveling to Singapore in September during the Token 2049 conference.

As part of his agreement, Cohen-Pavon could lose $48 million in profits from the fraudulent scheme.

The Context: Celsius in Ruins

The platform collapsed in 2022, leaving thousands of users with locked funds. Although a bankruptcy court approved a reorganization plan in November, with a distribution of approximately $2 billion to creditors, the reputational damage was irreversible.

This case adds to a growing list of crypto executives being prosecuted: Sam Bankman-Fried (FTX) was imprisoned, and Changpeng Zhao (Binance) served his sentence. The decisions in April could set a precedent for how fraud in the crypto space is punished.