Celsius bankruptcy
DOJ objects to Celsius plans to reopen withdrawals and sell stablecoins
The Department of Justice (DOJ) has submitted an objection to Celsius’ motion to reopen withdrawals for select customers and sell its stablecoin holdings. The DOJ is asserting that the state of Celsius’ financials are lacking transparency, and that key decisions like this should not be considered until the independent examiner report has been filed. The move by the DOJ adds to the objections filed last week by the Texas State Securities Board, the Texas Department of Banking, and the Vermont Department of Financial Regulation. All three are opposed to Celsius selling its stablecoin holdings, asserting there’s a risk the firm could use the capital to resume operating in violation of state laws. In a Sept. 30 filing with the Bankruptcy Court for the Southern District of New York, a U.S. Trus...
Texas, Vermont regulators object to Celsius stablecoin sale plan
State regulators from Texas and Vermont have filed a motion objecting to embattled crypto lender Celsius’ plans to sell off its stablecoin holdings. Separate motions from both regulators filed on Sept. 29 argue that there’s a risk the firm could use the capital to resume operating in violation of state laws. The filings come after a Sept. 15 notice from Celsius’ legal team asking the United States Bankruptcy Court for the Southern District of New York for permission to sell its stablecoin holdings, reportedly worth around $23 million. A hearing to accept or decline the motion will occur on Oct. 6. However, the move has not gone down well with the Texas State Securities Board (SBB), the Texas Department of Banking, and the Vermont Department of Financial Regulation, who filed obj...
BnkToTheFuture unveils 3 proposals to rescue Celsius from oblivion
Celsius’ lead investor BnkToTheFuture has outlined three proposals to save Celsius from bankruptcy while finding a good outcome for shareholders and depositors with funds stuck on the platform. Shared on Twitter by BnkToTheFuture CEO Simon Dixon on June 30, the three distinct proposals include either two options of restructuring and relaunching Celsius, or potentially co-investing in the platform alongside wealthy Bitcoin Whales. “Proposal #1: A restructuring to relaunch Celsius and allow depositors to benefit from any recovery through financial engineering. Proposal #2: A pool of the most influential whales in Bitcoin to co-invest with the community. Proposal #3: An operational plan that allows a new entity and team to rebuild and make depositors whole.” Dixon previously referred to...
