Celsius: Cohen-Pavon seeks lighter sentence for cooperation in CEL case

U.S. prosecutors asked a New York federal court to reduce the sentence of former Celsius executive Roni Cohen-Pavon for cooperation in the Alex Mashinsky case. In a filing to Judge John Koeltl, prosecutors said Cohen-Pavon provided “substantial assistance,” including preparing to testify. They argued the cooperation became public soon after his September 2023 guilty plea, and likely helped influence Mashinsky to plead guilty ahead of his January 2025 trial. Cohen-Pavon pleaded guilty in September 2023 to fraud and conspiracy tied to manipulation of the Celsius CEL token. The government said his conduct contributed to billions of dollars in losses after Celsius’ 2022 collapse. The sentencing hearing, originally set for May 7, was moved to May 13. Prosecutors did not request a specific prison term. Instead, they urged the court to apply sentencing guidelines that can reduce punishment for defendants who assist investigations. The defense sought “time served,” citing acceptance of responsibility and acknowledgment of harm to investors. Crypto-trader takeaway: this is a legal/sentencing headline, not a CEL token fundamentals catalyst. Still, cooperation-driven outcomes in major Celsius litigation can affect market sentiment and perceived legal risk around CEL-linked exposure in the short term.