Home » A Committee of Celsius Creditors Objects to Celsius Selling Its Stablecoin Cache – Bitcoin News

A Committee of Celsius Creditors Objects to Celsius Selling Its Stablecoin Cache – Bitcoin News

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In the wake of the Celsius bankruptcy case, the committee of unsecured creditors petitioned the court to stop the now-defunct cryptocurrency lender from selling its stablecoins. The creditors’ group’s written protest against the sale follows objections from a number of securities regulators filed on Sept. 29.

Creditors Oppose Celsius Selling $23 Million Stablecoin

On September 15, troubled crypto lending firm Celsius filed a petition in bankruptcy court to seek permission to sell $23 million in stablecoins.Court filings trying to access stablecoin stash leaked All-hands meeting recording Then, two weeks after the court demanded the stablecoin on Sept. 15, state securities officials in Vermont and Texas motion filed The opposite is Celsius getting a stash of stablecoins.

The Texas Securities Commission (TSSB) said that Celsius’ request for stablecoin cash was “inappropriate.” “The debtor fails to disclose in the motion how [many stablecoins] And how stablecoin monetization will ultimately benefit bankruptcy estates and debtor’s many consumer creditors. TSSB objection I will explain.

On October 25, 2022, the Official Committee of Unsecured Celsius Creditors motion The stablecoin sale request “should not be approved at this time,” he said. The Commission believes ownership is contested because certain creditors believe the coins are owned by Celsius customers. However, Celsius’ official Terms of Service (ToS) state that “It is unclear how your digital assets will be treated and what rights you, Celsius or a third party custodian may have with respect to such digital assets if covered. It is explained. Bankruptcy case. “

Additionally, ToS further explains:

[Customers grant Celsius] All rights and ownership to such assets, for use at its sole discretion.

“Neither a key nor a coin”

Despite the fine and bold text used in the Celsius ToS, the official committee of Celsius unsecured creditors requires Celsius to prove that the stablecoin actually belongs to the asset. I think. The creditor wants to see arguments and evidence that explicitly show that the assets belong to Celsius because the creditor genuinely believes that “the debtor has not provided evidence to support their claims.” I am thinking.

The Celsius bankruptcy case did not go smoothly, with opposition to the company’s decision at nearly every stage.However, on August 17, the Court approval A request made by Celsius to acquire the company’s holdings of bitcoin acquired from the company’s mining operations.

Creditors have written letters to the court, begging the judge to return funds held by Celsius to customers. When it comes to stablecoins, one woman lost 50,000 USDC wrote in a letter She believes stablecoin assets should be treated differently during bankruptcy proceedings.

Tags for this story

$23 million in stablecoins, bankruptcy, bankruptcy court, Celsius, Celsius CEO Alex Mashinsky, Celsius Crypto Lenders, Chapter 11 Bankruptcy, court examiner, Documents to submit to the court, court trustee, a creditor, Objection of the creditor, crypto lender, examiner, bankruptcy, Judge Martin Glenn, reorganization, Shobha Pillay, Southern District of New York, stablecoin, state securities regulator, Texas Securities Commission, TSSB, VDFRMore, Vermont Financial Regulatory Authority, William Harrington

What are your thoughts on the motion of the official committee of Celsius unsecured creditors against Celsius selling its $23 million stablecoin? Let us know what you think about this in the comments section below. please give me.

Jamie Redman

Jamie Redman is a news lead for Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written over 6,000 articles for Bitcoin.com News about disruptive protocols currently emerging.

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