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Pending final court approval, Celsius creditors have voted 98% in favour of a reorganisation plan that could see between 67% to 85% of their holdings on the bankrupt platform returned to them.
Reorganisation
Bankruptcy services company Stretto filed a voting declaration for approval from the court for the reorganisation plan to go ahead. A judge had already approved the voting procedure and now a confirmation hearing will take place on 2 October in which final approval will be decided.
The reorganisation of Celsius would see a sale of assets to Fahrenheit Holdings, which won a bid to acquire Celsius back in May this year. Fahrenheit Holdings also includes Arrington Capital and U.S. Bitcoin Corp.
It’s been a long and winding road for Celsius and its long-suffering creditors up to now. It’s been more than a year since the bankruptcy and then the resignation of CEO Alex Mashinsky, who was later accused of fraud for which he is awaiting trial.
Coinbase partnership questioned by SEC
A partnership that Celsius has made with Coinbase, in order to be able to distribute holdings back to its international customers, has recently come under fire from the Securities and Exchange Commission (SEC). The regulator has stated that this would put Coinbase more in the role of a broker than a distributor.
The SEC is obviously already embroiled in a court case with Coinbase and witnessed a motion filed by the crypto exchange to dismiss the SEC lawsuit in its entirety back at the beginning of July.
The regulatory agency has submitted a document to the court presiding over the Celsius bankruptcy case, and while acknowledging that it has no legal ramifications for this case, it does advise that the Coinbase partnership with Celsius be paused and that an alternative distributor be found.
Coinbase refutes SEC claims
Coinbase has countered the SEC with a tweet by Paul Grewal, Chief Legal Officer at the crypto exchange, who stated:
Coinbase is proud to engage with Celsius to distribute crypto back to its customers. I wonder, why would the SEC object to a trusted US public company taking on this role? We look forward to addressing this with the bankruptcy court and undertaking our important role to make Celsius customers whole.
The U.S. regulatory watchdog continues its battle against all things crypto, seemingly impervious to any form of reason. Fortunately, the likes of Coinbase have the resources and wherewithal to battle such a powerful adversary to the crypto industry. The ‘then they fight you’ phase obviously has some way to go.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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