Reducing your initial $820 million in debt to just $0.013 in a month can’t be easy. And, it’s no wonder such a heroic run has bankrupted Celsius. Last week, the cryptocurrency lending platform voluntarily filed Chapter 11 reorganization petitions after closing the last of its decentralized finance (DeFi) debts it owed to Compound, Aave, and Maker.
Although Chapter 11 bankruptcy law allows a company to stay in business and restructure its liabilities, and there are successful examples such as American Airlines, Delta, General Motors, Hertz and Marvel, some experts express skepticism about Celsius’s chances. to stay afloat. The procedures could mean that Celsius investors and clients won’t see their funds returned in the “foreseeable future,” similar to the fallout from the 2014 Mt. Gox hack, which is still ongoing.
And, outside legal pressure surely doesn’t help the platform. With the local Department of Financial Regulation (DFR) reminding users that the firm is not licensed to offer its services in the state, Vermont has become the sixth US state to issue a warning against Celsius.
A point for Ripple in a case against the SEC
The United States Securities and Exchange Commission (SEC) has suffered a blow in its case against Ripple after a US judge denied its claims of attorney-client privilege in relation to internal documents related to Hinman’s speech.. In denying the motion, US Judge Sarah Netburn pointed to the SEC’s hypocrisy in arguing that the speech – in which a former official, Bill Hinman, suggested that Ether (ETH) was not a security – was Hinman’s personal business. , while stating that he should be protected because he had received legal advice from the SEC to confirm the commission’s policies.
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Andorra is one step closer to its Digital Assets Law
A small European country located between France and Spain, Andorra is rapidly moving towards its crypto regulatory framework: the local government recently approved the respective Digital Assets Law. Although cryptocurrencies are not legal tender in Andorra, and the Digital Assets Law does not make proposals regarding the means of exchange, the CEO of a local Bitcoin (BTC) company highlights that Andorra could adopt a Bitcoin standard, mining Bitcoin with renewable energy, adopting Bitcoin as a reserve asset, and welcoming Bitcoin-focused companies from around the world.
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Cryptocurrencies will become a “financial product” in South Africa
The South African Reserve Bank is set to introduce regulations next year that will see cryptocurrencies classified and treated as financial assets to balance investor protection and innovation.. With more than six million people in the country exposed to cryptocurrencies, regulating the space has long been a talking point: It will allow the sector to be monitored for money laundering, tax evasion and terrorist financing. And, of course, to comply with the global guidelines established by the Financial Action Task Force (FATF).
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Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.