According to a recent report, crypto lending company (Celsius) might have relief as the USDC court series motions were rejected, more than $53 million were found from insider conducted withdrawals, and the Ethereum APR rates increased, due to which Celsius has the highest weight.
Good News for the Bankrupt Crypto Lending Platform
About 900k STETH and regular ETH have been staked in Ethereum, the cryptocurrency on which Celsius is most heavily weighted. As of right now, (Lowest hole percentage) is experiencing a significant APR increase. Excellent for filling the gap and gradually gaining more eth. In this case, Ethereum, customers’ deposits are staked by Celsius in yield-producing decentralized finance (Defi) protocols like Lido.
In return, Celsius gets STETH, which appreciates as rewards are earned on the deposits. This a significant sign that perhaps the organization might raise funds to re-amend its bankruptcy state.
Furthermore, Equity Motion holders attempted to have the Celsius Estate pay for their attorneys, but they lost their case before the judge on Monday, October 24th. They can still object in court, as they did today. However, the crypto company will save millions of dollars in legal expenses if they do. Equity Series shareholders are pressing for the dollar claims’ sums to be notarized.
Reports suggest this is the investor’s scheme to see if the lending cryptocurrency organization experiences significant profits during a bull market. As comprehended, they would reap the benefits at this point, and the Celsius would be made whole, but only in terms of USD value.
Regarding selling stablecoins, the UCC has objected to the USDC motion’s status as a “secured” loan. The courts will be debating this extensively on November 1st. Stablecoin holders argue that their currency is backed by cash in the bank or actual gold, while they claim that they should be included in the bankruptcy along with everyone else. Again, Celsius is anticipating winning the battle for this case.
Keith, a cryptocurrency mogul, also discovered a total of $53M in the past 90 days on Twitter. It may take up to a year or longer in bankruptcy, but this extra money was discovered to have been taken from Celsius insiders and employees, dubbed clawback amounts. The tweet stated names such as Daniel Leon at $25.5 M, Patrick Allen Holert at $430k, Frank Van Etten at $250k, and others at 10-100k or so within 90 days.
Other Miscellaneous Activities and Allegations Facing Celsius
In a bankruptcy court hearing on Thursday, cryptocurrency custodian Prime Trust agreed to return roughly $17 million in tokens to cryptocurrency lender Celsius Network. When the two parties’ contract was terminated in June 2021, Celsius filed a lawsuit against Prime Trust in August, alleging that Prime Trust had improperly withheld the tokens.
The stockholders of Celsius Network were dealt a blow on Monday 24th when US Bankruptcy Judge Martin Glenn denied their request to establish a formal committee of equity holders to stake a claim to the crypto lender’s most valuable assets.
The lending platform seems to be in further allegations as Critics accuse Celsius Network executives of stealing money and making sure the C-suite receives payment before creditors while the company is going through bankruptcy. Did the money raised by Celsius for Ukraine, which was intended to aid war victims, arrive at the proper location? That’s yet known incident as more individuals are curious,