Reducing your initial debt of $820 million to just $0.013 over the course of a month can’t be easy. Not surprisingly, such a heroic dash led to the bankruptcy of Celsius. Last week, the crypto-lending platform voluntarily petitioned for a Chapter 11 reorganization after closing its last decentralized financial (DeFi) debt to Compound, Aave, and Maker.
Although Chapter 11 bankruptcy allows the company to stay in business and restructure its obligations, and there are successful examples like American Airlines, Delta, General Motors, Hertz and Marvel, some experts are skeptical regarding Celsius’ chances of staying afloat. The actions could mean Celsius investors and clients may not see their money returned “for the foreseeable future,” similar to the fallout from the Mt. Gox in 2014, which is still ongoing.
To be sure, outside legal pressure is not helping the platform. With the local Department of Financial Regulation (DFR) reminding users that the company is not licensed to provide its services in the state, Vermont became the sixth US state to issue an anti-degree warning.
One point for Ripple in a case against SEC
The US Securities and Exchange Commission (SEC) has been dealt a blow in its case against Ripple after a US judge rejected its claims for attorney-client privilege regarding internal documents related to Hinman’s letter. US District Judge Sarah Netbourne dismissed the hypocrisy of the Securities and Exchange Commission, rejecting the proposal, saying that the letter – in which former official Bill Hinman suggested that Ether (ETH) was not a security – was a personal matter of Hinman while also claiming that it should be protected. Because he received legal advice from the Securities and Exchange Commission to confirm the agency’s policies.
Andorra is one step closer to digital asset law
A small European country sandwiched between France and Spain, Andorra, is rapidly moving to its own crypto regulatory framework – a relevant digital assets law was recently approved by the local government. While cryptocurrencies are not legal tender in Andorra, and the Digital Asset Act does not make any proposals regarding the means of exchange, the CEO of local Bitcoin (BTC) is highlighting that Andorra can adopt the Bitcoin standard, mine Bitcoin with renewable energy, and take advantage of Bitcoin As a reserve asset, we welcome Bitcoin-focused companies from around the world.
Cryptocurrency should become a ‘financial product’ in South Africa
The Reserve Bank of South Africa is set to introduce regulations next year that will see cryptocurrencies classified and treated as financial assets to strike a balance between investor protection and innovation. With more than six million people in the country exposed to cryptocurrency, regulation of the space has long been a moot point – it would allow the sector to be monitored for money laundering, tax evasion and terrorist financing. And of course, to comply with the global guidelines set by the Financial Action Task Force (FATF).