Celsius Network has announced emerging from bankruptcy, concluding an eighteen-month process with the confirmation of its plan of reorganization. The agreement includes the distribution of a $3 billion payout to its creditors as well as the creation of Ionic Digital, which will be owned by Celsius’ creditors, who will own equity in the form of...Read More
The bankrupt cryptocurrency lender Celsius Network has executed large transfers involving roughly $1 billion in ether (ETH) to centralized crypto exchanges Coinbase and Paxos, probably in preparation for its creditor repayment schedule. According to data from the crypto analytics platform Arkham Intelligence, Celsius moved the funds over 13 transfers, including two test transactions. Celsius Moves...Read More
Celsius, the platform whose bankruptcy plan was finally approved late last year, has recently lashed out at former clients who cashed out before the company had the opportunity to freeze their funds. Bold Propositions The former crypto staking, lending, and exchange platform that has since shifted its focus to Bitcoin mining following the approval of...Read More
Though most crypto investors have good reason to be optimistic this week, Celsius creditors may be in for a bad deal if digital asset prices continue to climb. The bankrupt crypto lending firm may soon be able to pay its cash-based debts simply by liquidating its newly profitable Bitcoin (BTC) and Ethereum (ETH) holdings alone....Read More
Celsius, a cryptocurrency lending platform, has revealed its intention to transform into a new entity with an exclusive emphasis on Bitcoin mining. This change, disclosed in a recent court filing, represents a departure from its initial reorganization strategy, including a focus on staking. Celsius Moves Towards Mining-Exclusive Entity Following feedback from the U.S. Securities and...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
Alex Mashinsky – former boss of defunct crypto lending firm Celsius – is scheduled to begin his criminal fraud trial on September 17, 2024. US District Judge John Koeltl confirmed the news during a hearing on Tuesday, adding that there will be three pretrial conferences in March, July, and September. In the meantime, Mashinsky will...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
John E. Deaton – a US attorney who represents thousands of XRP investors in the lawsuit between Ripple and the SEC – criticized the agency for one of its latest moves. Specifically, the regulator opposed a reorganization plan presented by Coinbase, according to which customers of the now-bankrupt crypto lender Celsius Network could be reimbursed...Read More
In the latest twist to the Celsius bankruptcy saga, founder Alex Mashinsky is requesting the court to dismiss the Federal Trade Commission’s (FTC) case against him. Mashinsky Arrested on Multiple Fraud Counts According to a Sept. 11 court motion, Mashinsky’s legal team argued that the FTC’s allegations do not contain the necessary elements to support...Read More
The now-defunct cryptocurrency lending company Celsius Network reportedly received permission from US Judge Martin Glenn to send a restructured bankruptcy plan to creditors, seeking their approval. If accepted, affected customers could retrieve up to 67% of their funds through a return of liquid digital currencies such as bitcoin. Plan Into Motion? According to a recent...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
Bankrupt crypto lender Celsius has been granted permission to begin liquidating its altcoins into Bitcoin (BTC) and Ether (ETH). This will occur before distributions to creditors take place, who expect to receive their assets denominated only in the top two cryptocurrencies by market cap. According to Bankruptcy judge Martin Glenn, Celsius “may sell or convert...Read More
Legal counsel representing Celsius’ Official Committee of Unsecured Creditors has refuted recent claims that submitted bids for the crypto lender’s assets were rejected. Last week, crypto journalist Tiffany Fong claimed she received documents detailing the bids on Celsius’ crypto assets, which “for the most part, abandoned.” According to Fong, Binance, Bank to the Future, Galaxy...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
The cryptocurrency platform Midas Investments disabled deposits and swaps due to severe financial losses caused by Celsius’ bankruptcy and FTX’s fiasco. CEO Iakov Levin said the organization will aim to focus on a new project next year that will be “fully transparent” and will offer an “improved investment experience.” Another Victim In a recent blog...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
Galaxy Digital has won the auction for GK8 – a crypto custody platform to be sold as part of bankruptcy proceedings for the insolvent crypto lender Celsius. Galaxy will utilize GK8’s custody solution as it develops GalaxyOne – its own institutional prime offering. As announced by Galaxy on Friday, GK8 founders CEO Lior Lamesh and...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
Celsius has been one of the more high-profile casualties of a sharp sell-off in the crypto market that was triggered in part by May’s collapse of the Terra blockchain. The now-bankrupt crypto lender’s legal headaches continue. In the latest development, the company is reportedly facing US federal investigations, a Tuesday filing from lawyers for its...Read More
Decentralized finance (DeFi) lending protocol TrueFi issued a “notice of default” to Blockwater Technologies on October 6th for failing to make a scheduled payment of more than $3.4 million loan in BUSD. The crypto market rout in Q2 and the resultant ongoing stress have unraveled several digital-asset lenders and exchanges. The liquidity crisis spurred the...Read More
The much-anticipated auction of assets belonging to bankrupt Celsius Network is likely to begin later this month. The embattled lending platform submitted an auction plan to the United States Bankruptcy Court for the Southern District of New York on Monday, media reports said. Here is all that you need to know about it: Celsius has...Read More
Celsius Network founder Alex Mashinsky, who resigned as the CEO of the embattled Defi platform on September 27, reportedly withdrew $10 million in May, just weeks before the company froze withdrawals on June 12. Mashinsky voluntarily disclosed the information to the official unsecured creditors’ committee in the ongoing bankruptcy proceedings, the Financial Times quoted his spokesperson...Read More
The Department of Justice (DOJ) is objecting to a motion by troubled cryptocurrency lender Celsius, seeking to reopen withdrawals for selected customers. Since Celsius halted withdrawals in June, the company has filed for Chapter 11 bankruptcy, while the CEO recently resigned from his position. A United States Trustee for the DOJ, William Harrington, on Friday...Read More
Celsius has been grilled by state watchdogs for alleged “financial mismanagements.” In a recent turn of events, Washington’s Assistant Attorney General Stephen Manning filed a motion on September 22nd to Judge Martin Glenn to represent the Washington State Department of Financial Institutions. The filing read, “I certify that I am a member in good standing...Read More
An independent examiner will look into various aspects of Celsius Network’s digital asset holdings, a US Bankruptcy Court ruled. It indicates that the failed crypto lending platform will face more stringent scrutiny of its financial conduct. US Bankruptcy Judge Martin Glenn approved a request to this effect on Wednesday, media reports said. However, the examiner has...Read More
California’s Department of Financial Protection and Innovation (DFPI) has now issued a desist and refrain order against Celsius. As such, the bankrupt crypto lender will not be to continue the sale and marketing of securities in the state of California. The development comes a month after the DFPI slapped two cease and desist orders to...Read More
The Thailand-based cryptocurrency platform – Zipmex – froze clients’ withdrawals citing volatile market conditions. It remains unknown when the company will restore the service. The latest firm in the cryptocurrency field to reveal issues on its platform is the Thai exchange Zipmex. In a recent tweet, it disclosed that users are not allowed to make...Read More
It’s been eight days since Celsius Network Halted Swaps, Transfer, and Withdrawal, citing extreme market conditions. This came as the Crypto Market was experiencing a massive sell-off that saw Bitcoin hitting $17k low levels. Celsius had reportedly stopped users from withdrawing from the network, which caused some uproar in the community as many investors feared...Read More
The crypto-lending firm Celsius, which offers high-yield returns on user deposits, appears to be the latest to falter in the face of tightening financial conditions. It also came barely one month after the Terra-Luna stablecoin network collapsed. Background Celsius Network is a blockchain-based lending platform accessible through a free mobile app. Celsius Network is a...Read More
