Last week, Celsius Network wrote its name in the alarming recent history of the crypto market failure along with Terra (originally LUNA, now called LUNC). The US exchange has de-stacked $247 million in Rolled Bitcoin (wBTC) from the Aave (AAVE) protocol and sent it to cryptocurrency exchange FTX while placing a withdrawal option for users on hold.
Immediately after that, US securities regulators from five states – Alabama, Kentucky, New Jersey, Texas and Washington – opened a Celsius investigation. This is not the first time that the statute has faced skepticism from law enforcement. In September 2021, the Texas State Securities Board scheduled a hearing regarding allegations that the network offered and sold securities in the state that were not registered or authorized.
What is worrisome, however, is that the percentage score may not emerge as a single case of mismanagement but the first consecutive victim amid the ongoing liquidity crunch in cryptocurrencies. By the end of the week, Hong Kong-based Babel Finance announced the temporary suspension of redemptions and recalls of its products, citing “extraordinary liquidity pressures”.
Gary Gensler attacks Lummis-Gillibrand’s bill
US Securities and Exchange Commission (SEC) Chairman Gary Gensler has admitted he is concerned, and the subject of his concern is the recently published “Responsible Financial Innovation Act,” which was co-sponsored by Senators Cynthia Loomis and Kirsten Gillibrand. Speaking at the Wall Street Journal’s CFO Summit, Gensler noted that the bill has the potential to “undermine the protections we have in the $100 trillion capital market.”
Last-minute veto in Panama
Sometimes months or even years of optimistic development can stop in a single moment. It happened in Panama, where the country’s President Laurentino Cortizo partially opposed Bill 697. The “crypto law” passed the National Assembly in April 2022, but Cortizo was so clear even at that point that he threatened to veto the document unless it included additional rules to combat money laundering. If the bill finally gets the president’s signature, it will make Panama the second Central American country to regulate crypto spending.
Dogecoin sued for Elon Musk
Billionaire Elon Musk has been sued for $258 billion over allegations of “engaging in a crypto pyramid scheme” involving Dogecoin (DOGE), a figure that may be a bit bold, as it triples the high market value of Dogecoin. In the lawsuit, one of the plaintiffs stated that Musk and his companies were “unfairly enriched” by $86 billion as a result of wire fraud, project gambling, false advertising, deceptive practices and other illegal behavior. The issue can certainly color the media space.