Analysis Crypto by Thebittimes.Com

On August 9, 2024, through the Blockchain Recovery Investment Consortium, Celsius Network initiated legal action against Tether and its affiliates in the United States Bankruptcy Court for the Southern District of New York. Celsius claims this lawsuit involves approximately $3.5 billion, but Tether has firmly dismissed it as meritless. Tether Will Defend Itself Against “Shake Down” Litigation Commenced by Celsius Learn more: https://t.co/6qjXD84EXh — Tether (@Tether_to) August 10, 2024 Lawsuit Overview Celsius’s lawsuit accuses Tether of mishandling Bitcoin collateral. According to the filing, Tether liquidated Celsius’s Bitcoin holdings at a crucial moment, leading to a claim for $2.4 billion worth of Bitcoin and additional damages. The court documents reveal that Celsius demands 57,428.64 BTC or its equivalent in US dollars, along with damages and legal fees. This figure contrasts with Tether’s reported value of approximately $2.4 billion. ...

The US Bankruptcy Court for the Southern District of New York approved Celsius Network’s restructuring plans for bitcoin mining on Wednesday. Celsius filed for Chapter 11 bankruptcy protection in July 2022. A US bankruptcy court has approved Celsius Network’s bitcoin mining shift as part of the ongoing Chapter 11 bankruptcy proceedings the collapsed crypto lender filed in July 2022. The approval order was given by Judge Martin Glenn of the US Bankruptcy Court for the Southern District of New York on December 27, Reuters reported. Per the ruling, Celsius can go ahead with the restructuring plans that aims at focusing the company’s operations on Bitcoin mining .  The judge’s order overruled objections to the restructuring plans, paving the way for the move as the crypto firm looks to navigate away from the impactful bankruptcy proceedings. As reported,   US Bitcoin Corp announced in August that it had entered into agreed t...

The California DFPI warned in July that it would be cracking down on crypto interest account providers in the state. The California Department of Financial Protection and Innovation (DFPI) has ordered crypto lending platform MyConstant to cease offering a number of its crypto-related products over alleged state securities law violations. The DFPI stated in a press release on Dec. 21 that it has ordered MyConstant to “desist and refrain” from offering its peer-to-peer loan brokering service and interest-bearing crypto asset accounts, which it says are in violation of the California Securities Law and California Consumer Financial Protection Law. The DPFI alleged that MyConstant’s offering and selling of its peer-to-peer lending service called “Loan Matching Service” violates one of the state’s financial codes. It also alleged that MyConstant engaged in “unlicensed loan brokering,” as the platform induced lenders to lend without proper licenses. The regulators also had a problem with t...

Weekly-realized losses peaked at $20.5 billion when Terra Luna (LUNC) imploded and reached $33 billion when 3AC and Celsius collapsed, according to Chainalysis. Blockchain analytics firm Chainalysis has attempted to put the FTX collapse into perspective — comparing peak weekly-realized losses in the wake of the exchange’s collapse compared to previous major crypto collapses in 2022. The Dec. 14 report found the depegging of Terra USD (UST) in May saw weekly-realized losses peak at $20.5 billion, while the subsequent collapse of Three Arrows Capital and Celsius in June saw weekly-realized losses peak at $33 billion.  In comparison, weekly realized losses during the FTX saga peaked at $9 billion in the week starting Nov. 7, and have been reducing weekly since.  1/ Our data suggests that FTX’s demise hasn’t been crypto investors’ biggest issue this year. Both the depegging of Terra’s UST token & the collapse weeks later of Celsius & Three Arrows Capital (3AC) drove much bigger re...