Bankrupt lending firm Celsius has transferred over $125 million worth of its Ether to crypto exchanges in the past week as part of its initiative to repay creditors. The move follows that of FTX and Alameda Research, which also resumed funds transfer earlier this month. $125 Million ETH Transfer From January 8 to January 12,...Read More
The New York bankruptcy court has approved Celsius Network’s restructuring plan, effectively enabling the cryptocurrency lending platform to come out of bankruptcy. Meanwhile, the US Securities and Exchange Commission (SEC) still has to greenlight the company’s new bitcoin mining firm. Celsius Exiting Bankruptcy More than one year after filing for Chapter 11 bankruptcy and freezing...Read More
The recent developments in the Celsius case show that the embattled crypto lender is currently in court seeking final approval to initiate customer repayments by year-end and gain complete approval for its reorganization plan. During a court hearing on Oct. 2, Christopher Koenig, the company’s legal counsel, stated that a new entity called NewCO will...Read More
Joel E. Cohen, a mathematician and biologist acting as the valuation adviser for Celsius Network through Stout Risius Ross, has verified the accuracy of the fair value of specific assets and liabilities of the debtors. After several months of negotiations and discussions, most Celsius creditors have recently approved a plan that would return around $2...Read More
More than 95% of creditors across all eligible classes voted to accept the plan, reported Celsius on September 26. It is a “testament to our collaborative efforts during Chapter 11” and a “major milestone” it added in reference to the bankruptcy proceedings. “The confirmation hearing is scheduled to begin October 2, 2023. We are hoping...Read More
Roni Cohen-Pavon, a former executive at the bankrupt cryptocurrency lender Celsius Network, pleaded guilty to criminal charges in the United States. Notably, Cohen-Pavon has also agreed to collaborate with investigators in their ongoing investigation. Cohen-Pavon Pleads Guilty During a hearing held on Wednesday before U.S. District Judge John Koeltl in Manhattan, Cohen-Pavon confessed to four...Read More
Bankrupt crypto lender Celsius Network submitted an “adversary complaint” against EquitiesFirst Holdings on Wednesday, as per the confidential adversary complaint. The moves come as Celsius attempts to recoup assets from the private lender which reportedly owes $439 million. The debt comprises $361 million in cash and 3,765 BTC as of July 2022. EquitiesFirst: The ‘Mysterious’ Debtor...Read More
The leading cryptocurrency exchange – Coinbase – has reportedly started offering crypto loans to US institutional investors. The move could signal the company’s willingness to strengthen its position in America despite the regulatory uncertainty and the issues with local watchdogs. Recall that the US SEC filed a lawsuit against Coinbase in June, accusing the trading...Read More
Prime Trust – a once-leading cryptocurrency custodian – filed for Chapter 11 bankruptcy protection in Delaware approximately two months after the Nevada Financial Institutions Division claimed it operates in an “unsafe and unsound manner.” The company was among the leaders in its field a few years ago, holding funds on behalf of other fallen behemoths...Read More
The bankrupt cryptocurrency lender Celsius, its creditors, and its Series B holders have reached a settlement with regard to the distribution of $25 million in proceeds from the sale of crypto custodian GK8. According to the filing, the settlements seek to deploy $24 million for legal expenses while allocating the rest of $1 million among...Read More
Just over a week ago, a confidential source from within the CFTC stated that the regulator had arrived at the conclusion that Celsius and its CEO, Alex Mashinsky, had violated U.S. law. At the time, the source was unable to confirm when or whether a lawsuit against the platform and its leadership would be filed....Read More
The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against fallen crypto lender Celsius and its ex-boss, Alex Mashinsky after the latter was reportedly arrested on Thursday. The agency accused Celsius of illegally raising billions of dollars through unregistered securities offerings, but only named CEL token as a relevant crypto security in the...Read More
Three days after Celsius imploded on the 13th of July 2022, the CFTC, swiftly followed by the SEC, launched separate investigations into the crypto platform’s business practices. The company was also investigated – and in some cases sued – separately by local authorities in Vermont, New York, and elsewhere. I’m suing the former CEO of...Read More
This year, Ethereum’s network officially transitioned to a Proof-of-Stake consensus algorithm, leaving Proof-of-Work forever behind. One of the multiple implications The Merge has had on the protocol is that there are no longer Ethereum miners. Validators secure the network now, and the path to becoming one is supposed to be tremendously simplified – deposit 32...Read More
Celsius’ wallets have been quite active amid its ongoing bankruptcy and restructuring process. The beleaguered crypto lender – which remains one of the biggest firms with a staked ETH portfolio – has transferred almost $900 million worth of the crypto asset over the past week. Celsius’ Ether Movement According to data shared by the blockchain...Read More
Celsius Network founder Alex Mashinsky – who was accused of defrauding investors out of billions of dollars in crypto by concealing the failing health of his now-bankrupt lending platform – has filed a response seeking to dismiss the New York State complaint against him. The complaint was filed by New York State Attorney General Letitia...Read More
Celsius is seeking to consolidate two of its entities located in the United Kingdom and the United States. The bankrupt crypto lender faces charges of poor record-keeping of its affiliate companies, making it almost impossible to “fully reconstruct” intercompany claims. The distinction between Celsius’ UK and US operations was deemed to be a “sham” by...Read More
Leading cryptocurrency exchanges Coinbase and Gemini are parts of the two consortiums set to bid for bankrupt crypto lender Celsius Network’s assets at an auction scheduled for Tuesday, the 25th of April, 2023, according to a court filing and report from Fortune. The court document revealed that the auction would be held at the New...Read More
About a week ago, a settlement was reached between Celsius and Celsius Custody account holders. As a result, the latter group was promised a refund of up to 72.5% – half on the spot and half by the end of the year – provided they signed away their right to further litigation. Earn Users Hung...Read More
Due to a landmark decision by Justice Martin Glenn, the courts have ruled that Celsius customers can receive up to 72.5% of their deposited crypto back, although the refund would not be instant in all cases. Refund for Custody Accounts The deal would only apply to Custody account holders. Nearly 600,000 Earn such investors would...Read More
The bankrupt cryptocurrency lending firm Celsius announced the reopening of Distributable Assets in certain Custody Accounts. Following the update, some customers took to social media to reveal being able to withdraw funds for the first time since the lender halted its services last June. The development comes a month after the United States Bankruptcy Court...Read More
Celsius abandoned its promise of transparency from its start, according to former prosecutor Shoba Pillay who was appointed as an independent examiner by United States Bankruptcy Judge Martin Glenn. In a filing, Pillay stated that the bankrupt crypto firm conducted its business in a starkly different manner than how it marketed itself to its customers in...Read More
A lot has happened during the Celsius bankruptcy case since the platform originally went under back in July. Between accusations of fraud, arguments that customers (or unsecured creditors, according to the firm) signed over their crypto, alleged attempts by the former CEO to flee the country, and more, Celsius’ court proceedings have been a wild...Read More
Alex Mashinsky, the co-founder and former CEO of bankrupt cryptocurrency lender Celsius Network has been sued by New York Attorney General Letitia James for allegedly defrauding investors, including more than 26,000 New Yorkers, out of billions of dollars worth of digital assets. In an official press release, the AG alleged that before Celsius’ bankruptcy, Mashinsky...Read More
A federal bankruptcy judge has ruled that crypto-assets deposited in Celsius Network’s “Earn” accounts do not belong to the customers. Instead, the funds in the interest-bearing accounts belong to the bankrupt cryptocurrency lending platform. In a 45-page written decision, Martin Glenn, the chief US bankruptcy judge in the Southern District of New York, determined that...Read More
Troubled Bitcoin miner Core Scientific will shut down more than 37,000 crypto mining rigs belonging to bankrupt crypto lender Celsius Network as both firms finally reach an agreement in court. Core Scientific, which hosts rigs for Celsius, filed for Chapter 11 bankruptcy in December and had partially blamed the lender for its financial troubles. Both...Read More
Cryptocurrency lender Celsius Network said it is preparing to file a motion requesting a deadline extension for users to submit their claims by another month. In its latest update, Celsius stated that the motion is scheduled to be heard by the bankruptcy court on January 10. The deadline will be extended until at least then....Read More
In a hearing on Dec. 7, bankruptcy judge Martin Glenn ordered the embattled crypto-lending firm to return funds that were not part of its yield-bearing accounts. The total is around $44 million, which represents a small fraction of the billions in crypto still owed to Celsius customers, according to Bloomberg. “I want this case to...Read More
Embattled cryptocurrency exchange Zipmex is all set to be acquired by V Ventures, a subsidiary of Thoresen Thai Agencies Pcl, for $100 million. The venture capital fund is reportedly offering $30 million in cash, and the rest will be paid in crypto tokens. According to Bloomberg, V Ventures will acquire about 90% of Zipmex. The...Read More
The US Bankruptcy Court of the Southern District of New York approved crypto lender Celsius’ motion for a deadline for customers to file a claim. January 3rd, 2023, has been set as the last date for creditors to file a proof of claim against the bankrupt firm. The filing reads, “The United States Bankruptcy Court...Read More
