US Prosecutors Seek Leniency for Former Celsius Executive

US federal prosecutors have requested a reduced sentence for Roni Cohen-Pavon, former chief revenue officer of the collapsed crypto lender Celsius, citing his cooperation in ongoing investigations. The recommendation was submitted in a filing to the US District Court for the Southern District of New York ahead of his sentencing.

Cooperation in Case Against Former CEO

US Attorney Jay Clayton highlighted Cohen-Pavon’s “substantial assistance,” including his willingness to testify against former Celsius CEO Alex Mashinsky. Prosecutors did not specify a prison term, instead asking the court to apply standard sentencing guidelines with consideration for cooperation.

Cohen-Pavon previously pleaded guilty to fraud and conspiracy tied to manipulation of the CEL token, part of the broader collapse that wiped out billions in customer funds in 2022.

Defense Requests Time Served

Lawyers for Cohen-Pavon have argued for a sentence of time already served, stating he accepted responsibility early and contributed meaningfully to the case. His cooperation was reportedly a factor in Mashinsky’s decision to plead guilty before trial.

Broader Context of Crypto Enforcement

Mashinsky was sentenced to 12 years in prison in 2025 after admitting to fraud charges. The Celsius collapse remains one of several major failures during the 2022 crypto downturn, alongside other high-profile insolvencies that reshaped regulatory scrutiny across the industry.