In a recent turn of events, creditors of the infamous Celsius bankruptcy case have voiced their approval for a reorganization plan. This scheme aims at returning approximately $2 billion worth of Bitcoin and Ethereum to creditors. Their approval is not the final step, though. While a staggering 98% of creditors support the plan, it still awaits the final nod in a confirmation hearing scheduled for October 2 at the United States Bankruptcy Court.
This ruling will significantly influence the redistribution of Bitcoin and Ethereum to Celsius’s creditors. Furthermore, it charts a course for a new company with the tentative moniker “NewCo.” This entity is set to operate and expand former Celsius’s Bitcoin mining operations and stake Ethereum,Notably, “NewCo” will be managed by the Fahrenheit Group comprising crypto-native individuals and leading organizations like venture capital firm Arrington Capital and US Bitcoin Corp.
This chain of events follows Celsius’s bankruptcy announcement back in July 2022. Following the declaration, the Securities and Exchange Commission (SEC) took Celsius and former CEO Alex Mashinsky to court. The case alleged fraudulent fundraising involving “crypto asset securities.”
In a similar account, the crypto giant Binance managed to reopen its services to Belgian cryptocurrency enthusiasts after a three-month hiatus. Earlier, Belgium’s finance regulator had red-flagged Binance for allegedly violating anti-money laundering laws and counter-terrorism financing laws. This led Binance to redirect its services for Belgians through its Polish-registered arm. Details about the changes brought to resume services in Belgium are still under wraps.
It’s interesting to note the shifting position of countries concerning crypto regulations. While some aim to tighten their grip over decentralized finance, others tend to adopt a more lenient approach for the sake of innovation. Although sometimes problematic, this dynamic further solidifies cryptocurrency’s position in the global economy.
While optimistic, both these developments shine a spotlight on some fundamental concerns in the crypto world – transparency and accountability. These instances underline the essential role of regulation to guard against malfeasance while balancing the need for unhindered technological progression. Crucially, they reiterate the magnitude of responsibility falling upon consumers to tread with care in the often volatile crypto markets.
Source: Cointelegraph
