The former Vice President of Operations at Celsius Network, Roni Cohen Pavon, has been facing legal woes in New York. Pavon was accused of taking part in an insider trading scheme involving shares of the biotech company Innate Immunotherapeutics. The sentencing hearing for Pavon took place on November 1, 2021, however, the outcome remains undisclosed.
The proceedings followed charges filed by the U.S. Securities and Exchange Commission (SEC) in 2018. The SEC alleged that Pavon, along with a group of co-conspirators, leveraged confidential information to trade shares of Innate Immunotherapeutics ahead of a major clinical trial announcement.
The insider trading scheme reportedly began in 2017. The SEC's complaint indicated that the group of traders, including Pavon, made a profit of over $768,000 from the insider trading. The former Celsius Network executive pleaded guilty to the charges in April 2021.
Despite the legal troubles faced by its former executive, Celsius Network is continuing its operations. The firm offers earning services, where users can earn up to 17.78% APY on their crypto holdings. The company also provides loans against digital assets and has a native utility token, CEL.
The Celsius Network, with over 1 million users, is a trusted platform that supports over 45 cryptocurrencies. The company was founded by Alex Mashinsky, a well-known entrepreneur in the tech industry. The platform aims to provide users with unprecedented economic freedom through the democratization of financial services.