Celsius Network Ltd., the crypto lender that filed for Chapter 11 bankruptcy protection on July 13, is looking to release roughly $50 million worth of crypto assets to Celsius custody account holders. Reportedly, the Celsius custody accounts did not participate in the earn and borrow program. A court hearing concerning the matter of relief will take place on October 6.
Court documents show that Celsius is looking to release roughly $50 million in funds to select customers. The debtors’ motion seeks to “reopen withdrawals for certain customers with respect to certain assets held in the custody program and withhold accounts, and granting related relief.” Celsius filed for bankruptcy on July 13, 2022, after the company paused “all withdrawals, swaps, and transfers between accounts” a month earlier on June 12.
The Celsius bankruptcy process has been very extensive, and the lender’s customers have written letters to the court begging for their funds to be released. One customer explained that it was a matter of keeping a roof over his family and food on the table. Reports have shown Ripple Labs was interested in Celsius and the company’s assets, after the company asked to comment on bankruptcy court filings.
In mid-August, a Financial Times report, quoting anonymous sources, alleges that the CEO of Celsius Network, Alex Mashinsky, controlled the crypto lending company’s trading scheme and placed bad bets. On August 16, Celsius Network was approved by the bankruptcy court judge to sell bitcoin (BTC) the company previously mined to continue funding specific operations. At the end of August, the company countersued the founder of Keyfi, Jason Stone, claiming millions were stolen from the crypto lender’s wallets.
The month before, on July 7, 2022, Stone told the public he hired Roche Freedman LLP to bring Celsius to court. “I feel it is only prudent to finally set the record straight. I have brought legal action against Celsius to settle this issue once and for all,” Stone said at the time. This week, the latest court filing explains that Celsius wants to release funds to a specific sliver of customers. The customers held funds with Celsius using a custody program, and the debtors’ motion says these types of accounts are different.
While custody holders’ funds may likely “not constitute [as] property of their estates,” earn or borrow customers “are likely property of their estates,” the filing notes. Celsius further declares that the custody account assets will not be released to “any current or former employees or insiders, or affiliates of any current or former employees or insiders.” The motion filed by Celsius further notes that the crypto lending company understands that some customers may not like the proposed relief given to custody holders. The court filing states:
The debtors recognize that the relief sought in this motion may not be supported by every customer or stakeholder.
What do you think about Celsius seeking to give relief to custody account customers? Let us know what you think about this subject in the comments section below.
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,700 articles for Bitcoin.com News about the disruptive protocols emerging today.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Today's Top Ethereum and Bitcoin Mining Devices Continue to Rake in Profits
As the crypto economy hovers just under $2 trillion in value, application-specific integrated circuit (ASIC) mining devices are making decent profits. While ASIC miners can still mine ethereum, a 1.5 gigahash (GH/s) Ethash mining device can rake in $51.58 per ... read more.
Celsius Network Ltd., the crypto lender that filed for Chapter 11 bankruptcy protection on July 13, is looking to release roughly $50 million worth of crypto assets to Celsius custody account holders. Reportedly, the Celsius custody accounts did not participate in the earn and borrow program. A court hearing concerning the matter of relief will take place on October 6.
Court documents show that Celsius is looking to release roughly $50 million in funds to select customers. The debtors’ motion seeks to “reopen withdrawals for certain customers with respect to certain assets held in the custody program and withhold accounts, and granting related relief.” Celsius filed for bankruptcy on July 13, 2022, after the company paused “all withdrawals, swaps, and transfers between accounts” a month earlier on June 12.
The Celsius bankruptcy process has been very extensive, and the lender’s customers have written letters to the court begging for their funds to be released. One customer explained that it was a matter of keeping a roof over his family and food on the table. Reports have shown Ripple Labs was interested in Celsius and the company’s assets, after the company asked to comment on bankruptcy court filings.
In mid-August, a Financial Times report, quoting anonymous sources, alleges that the CEO of Celsius Network, Alex Mashinsky, controlled the crypto lending company’s trading scheme and placed bad bets. On August 16, Celsius Network was approved by the bankruptcy court judge to sell bitcoin (BTC) the company previously mined to continue funding specific operations. At the end of August, the company countersued the founder of Keyfi, Jason Stone, claiming millions were stolen from the crypto lender’s wallets.
The month before, on July 7, 2022, Stone told the public he hired Roche Freedman LLP to bring Celsius to court. “I feel it is only prudent to finally set the record straight. I have brought legal action against Celsius to settle this issue once and for all,” Stone said at the time. This week, the latest court filing explains that Celsius wants to release funds to a specific sliver of customers. The customers held funds with Celsius using a custody program, and the debtors’ motion says these types of accounts are different.
While custody holders’ funds may likely “not constitute [as] property of their estates,” earn or borrow customers “are likely property of their estates,” the filing notes. Celsius further declares that the custody account assets will not be released to “any current or former employees or insiders, or affiliates of any current or former employees or insiders.” The motion filed by Celsius further notes that the crypto lending company understands that some customers may not like the proposed relief given to custody holders. The court filing states:
The debtors recognize that the relief sought in this motion may not be supported by every customer or stakeholder.
What do you think about Celsius seeking to give relief to custody account customers? Let us know what you think about this subject in the comments section below.
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,700 articles for Bitcoin.com News about the disruptive protocols emerging today.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Today's Top Ethereum and Bitcoin Mining Devices Continue to Rake in Profits
As the crypto economy hovers just under $2 trillion in value, application-specific integrated circuit (ASIC) mining devices are making decent profits. While ASIC miners can still mine ethereum, a 1.5 gigahash (GH/s) Ethash mining device can rake in $51.58 per ... read more.
Polygon was a notable mover on Friday as the token surged to a two-week high, while volatility in crypto markets eased. Traders have been tense this week ahead of the payrolls report, however following the release of the data, bulls returned to action. Chainlink also rose, hitting a ten-day high in the process.
Polygon (MATIC) was one of Friday’s big gainers, as the token rallied by as much as 7% in today’s session.
Following a low of $0.8342 on Thursday, MATIC/USD moved closer to $1.00 today, as prices surged to a peak of $0.9083.
This sees the token climb to its highest point since August 17, and comes as prices marginally broke out of a key resistance point.
MATIC/USD – Daily Chart
Looking at the chart, this ceiling was the $0.9015 mark, which has recently acted as a point of market uncertainty.
Friday’s breakout comes as the 14-day relative strength index (RSI) also rose, with the index hitting a nearly three-week high.
As of writing, the RSI is close to a ceiling of 60.00, which could see bears return, especially if bulls opt to secure gains, rather than maintain positions.
Chainlink (LINK) also extended recent gains on Friday, with prices rising to a ten-day high earlier in the day.
LINK/USD rose to an intraday high of $7.15 in today’s session, which is a point that has also acted as resistance.
This rise is the strongest point for chainlink since August 26, which is the last time the token was trading at this current ceiling.
LINK/USD – Daily Chart
As seen from the chart, on that occasion, bears moved to engulf bulls, sending prices to a bottom of $6.40.
The RSI has hit a ceiling of 50.00, which could trigger history to repeat itself, however bulls have so far resisted this.
It appears that traders are targeting the $7.50 level as a potential exit point, which could mean a breakout of $7.15 may be on the cards in upcoming days.
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Do you believe chainlink can overcome its $7.15 resistance level? Let us know your thoughts in the comments.
Eliman brings a eclectic point of view to market analysis, having worked as a brokerage director, retail trading educator, and market commentator in Crypto, Stocks and FX.
Image Credits: Shutterstock, Pixabay, Wiki Commons, Dennis Diatel / Shutterstock.com
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Oman to Incorporate Real Estate Tokenization in Virtual Assets Regulatory Framework
Real estate tokenization is set to be incorporated into Oman Capital Markets Authority (OCMA)'s virtual asset regulatory framework. According to an advisor with the authority, the tokenizing of real estate will open investment opportunities for local and foreign investors. Real ... read more.
Source From : News