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Celsius Creditors Committee Opposes Celsius Selling Its Stablecoin Cash – Bitcoin News

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 sale of $23M stablecoin

On September 15, troubled crypto lending firm Celsius filed a petition in bankruptcy court to seek permission to sell $23 million in stablecoins. The court filing that attempted to access the stash of stablecoins came after records of the full meeting were leaked showing that Celsius wanted to attempt a revival plan. Then, two weeks after the court demanded the stablecoin on Sept. 15, state securities officials in Vermont and Texas filed motions against Celsius to acquire stablecoin stashes. submitted.

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 the monetization of stablecoins will ultimately benefit bankruptcy property and the debtor’s many consumer creditors,” the TSSB dissent explains.

On October 25, 2022, the official committee of Celsius unsecured creditors highlighted a motion stating that the demand to sell the stablecoin “should not be approved at this time.” 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 digital assets will be treated and what rights you may have with respect to such digital assets if you, Celsius, or a third-party administrator becomes the subject.” 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 commission of unsecured Celsius creditors requires Celsius to prove that the stablecoin actually belongs to the asset. I believe there is. 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 approved 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 the funds held by Celsius to the client. He wrote that he believes tablecoin assets should be treated differently during bankruptcy proceedings.

Tags for this story

$23 Million Stablecoin, Bankruptcy, Bankruptcy Court, Celsius, Celsius CEO Alex Mashinski, Celsius Crypto Lender, Chapter 11 Bankruptcy, Court Examiner, Court Filings, Court Trustee, Creditors, Creditors objection, crypto lender, examiner, bankruptcy, Judge Martin Glenn, restructuring, Shoba Pillay, Southern District of New York, Stablecoins, state securities regulator, Texas Securities Commission, TSSB, VDFR, 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 technology journalist based 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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Celsius Creditors Committee Opposes Celsius Selling Its Stablecoin Cash – Bitcoin News

Source link Celsius Creditors Committee Opposes Celsius Selling Its Stablecoin Cash – Bitcoin News

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