Texas, Vermont regulators object to Celsius stablecoin sale plan
A key concern is that the firm hasn’t explicitly outlined what it will do with the stablecoin sale proceeds. 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....
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A committee of unsecured creditors stemming from the Celsius bankruptcy case has filed a motion with the court to stop the now-defunct crypto lender from selling the company’s stablecoin holdings. The written protest by the group of creditors against the sale follows objections from a slew of securities regulators filed on Sept. 29. Creditors Object to Celsius Selling $23 Million in Stablecoins On Sept. 15, the embattled cryptocurrency lending firm Celsius filed a motion with the bankruptcy court to get permission to sell $23 million in stablecoins. The court filing attempting to gain....
As Celsius’ bankruptcy proceedings continue, the court’s trustee William Harrington appointed an examiner on Thursday in order to review the company’s finances, according to a filing submitted on September 29. On the same day, state securities officials from Vermont and Texas filed objections to the crypto lender accessing the company’s stablecoin cache. 15 days prior to the objections, the crypto lender filed paperwork that said Celsius was looking to access $23 million in stablecoin reserves.
State Securities Officials Step Into the Celsius Bankruptcy....
The objection is seeking a deferral on Celsius motions until the independent examiner report on the company is filed over the next couple of months. 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 U.S. Securities and Exchange Commission (SEC) and several state regulators are reportedly investigating the decision by crypto lender Celsius Network to freeze withdrawals.
U.S. Securities Regulators Investigate Celsius’ Withdrawal Freeze
The U.S. SEC and securities regulators in Alabama, Kentucky, New Jersey, Texas, and Washington are investigating the decision by crypto lender Celsius Network to freeze withdrawals, Reuters reported Thursday.
Texas’ director of enforcement Joseph Rotunda explained that officials representing the five state....
Earlier this year, crypto lending platform BlockFi started facing the heat from state regulators in New Jersey, Texas, and Alabama. Other states have joined the fold since then, as well. Celsius this week is now facing similar cease and desist demands from all three of the same states that BlockFi first faced. Let’s take a look at what we know thus far, and what it could potentially mean for DeFi moving forward. Regulators Reach: What Celsius Is Facing It’s becoming quickly apparent that Celsius is joining the fight in facing regulators in the same vein that BlockFi has. On....