The lending firm said clients with U.S. dollars in their accounts could withdraw up to $100,000 in a 24-hour period, with the funds received in 5–10 business days.
Zipmex gradually resuming Z Wallet withdrawals, says debt moratorium is not bankruptcy
The Asian cryptocurrency exchange was impacted by the Celsius and Babel Finance defaults but is working with investors to resolve the situation.
Fed demands Voyager remove ‘false’ claims deposits are FDIC insured
The Fed and FDIC allege that Voyager “made various representations online” that its funds were FDIC insured.
After weeks of rumors, Thai crypto exchange Zipmex files for bankruptcy in Singapore
It appears the firm’s fortune took a turn to the worst via its exposure to troubled crypto lending service Babel Finance.
FTX proposes a way to give Voyager Digital clients some of their digital assets back early
FTX is proposing to buy out all Voyager Digital digital assets and digital asset loans, except loans to Three Arrows Capital, which would remain Voyager Digital’s problem.
Crypto lender Vauld seeks protection against creditors: Report
The crypto exchange, which is backed by Peter Thiel and Coinbase, halted withdrawals in July following an apparent run on its assets.
Source claims 3AC’s Deribit exposure is worth much less than reported
The creditors of Three Arrows Capital may be left holding the bag, according to a source who claims the hedge fund’s exposure to Deribit is only worth $25 million.
CEL Token Seen Making A Recovery Despite Celsius Going Bankrupt
Celsius (CEL) is currently witnessing a mid-crisis bounce. After registering for bankruptcy protection in the face of various probes, the token’s value transcended pressure and increased by more than 25 percent on Saturday.
Despite the present efforts of its management, the Celsius Network token is exhibiting indications of a revival, according to certain observers. In the past 24 hours, the price of a CEL has increased by approximately 80 percent.
CEL Up 30% – Bullish Run In The Offing?
CEL was trading at $0.73 at the time of writing, a 30 percent rise over its July 15 closing price.
Faced with skepticism and a growing number of withdrawal stoppage, CEL’s price soared from $0.64 to $1.53 on June 19 and June 20.
Celsius filed for Chapter 11 bankruptcy late Wednesday in the U.S. Bankruptcy Court for the Southern District of New York. Last month, the company halted withdrawals, swaps, and transfers on its platform, claiming “extreme market volatility.”
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The worldwide cryptocurrency market capitalization was trading at $928 billion, up more than 3% in the previous 24 hours. The total trading volume of cryptocurrencies increased almost 3% to $77 billion.
The suspension of withdrawals by Celsius Network last month pushed the cryptocurrency market into a gloomy pit, as its bankruptcy petition revealed $1.2 billion in faulty agreements.
This includes the liquidation of $840 million in Tether debt, $750 million worth of mining hardware, and the loss of 38,000 ETH because of staking.
In addition, it has $411 million in outstanding loans to retail customers, secured by digital assets valued at $765 million.
BTC total market cap at $397 billion on the weekend chart | Source: TradingView.com
CEL Seeing Steady Ascent
The price rally of CEL appears to be quite typical, with the token witnessing steady climbs and dips over the previous 30 days. On June 21, CEL peaked at $1.53 per token before rapidly reversing course.
Meanwhile, since Celsius began repaying its financial obligations last week, on-chain analysis of CEL has showed steady accumulation, according to data from Santiment. Outside of established exchanges, the quantity of CEL tokens has increased by 0.5 percent during the past three days.
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Likewise, the volume of Celsius has been increasing recently. The CEL volume was 18 million in the early morning hours of July 15. At press time, the same volume stood at 66 million. The variation in volume is indicative of fluctuating investor sentiment.
The price of Celsius’ CEL cryptocurrency is increasing as a result of short sellers unloading CEL tokens on exchanges. Coinglass has reported that exchanges including Okex, FTX, and Huobi are experiencing short positions of more than 80 percent.
Featured image from HowStuffWorks, chart from TradingView.com
Crypto Biz: 3AC’s founders are nowhere to be found
Liquidators don’t know the whereabouts of Kyle Davies and Su Zhu. Meanwhile, Grayscale’s legal officer says the asset manager’s lawsuit against the SEC could take a while to play out.
Celcius Market Cap Crashes 86% On Year-To-Date Basis As Company File For Bankruptcy
Investors in the failing cryptocurrency lending startup Celsius are still losing money weeks after the company filed for bankruptcy. Customer withdrawals had been frozen.
Celcius Market Cap Crash 86%
As the company’s problems worsen, investors have stepped out to relate their experiences following the withdrawal freeze and the ensuing bankruptcy application. One user who placed their entire life money in Celsius lost everything.
Uncertainty over when business as usual will return further complicates the situation for the affected investors. Even though Celsius voiced optimism about allowing withdrawals, the most recent developments continue to dash investors’ hopes.
The firm’s issue also seems to have played a role in the native token CEL’s notable capital outflows. According to CoinMarketCap, CEL’s market value has dropped by 85.84% year-to-date in 2022, from $1.06 billion on January 1 to $0.15 billion on July 14.
CEL market cap YTD. Source: CoinMarketCap
Despite attempts by Celsius holders to push the cryptocurrency back up to its highs in an effort to save the struggling company, the token has suffered huge losses.
For instance, on July 4, CEL’s community’s activity produced double gains.
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A Community Of Woes
Early on Wednesday morning, the cryptocurrency lender issued a press release revealing that it has submitted a Chapter 11 petition to the Southern District of New York bankruptcy court. CEO Alex Mashinsky of the company stated in the statement that the filing was “the right choice” for the business.
After limiting customer withdrawals due to harsh market conditions that affected liquidity, Celsius ran into difficulty early last month. The company filed for bankruptcy on July 13 even though it had previously told users that it was trying to return to normal operations.
The CEO noted:
“I am confident that when we look back at the history of Celsius, we will see this as a defining moment, where acting with resolve and confidence served the community and strengthened the future of the company,”
According to the press statement, Celsius has $167 million in cash reserves and intends to continue operations.
Customers of Celsius have expressed their opinions in response to the bankruptcy filing. One of the most popular posts on a subreddit devoted to the firm includes a list of suicide hotline numbers. Hours after Celsius released its message, a user opened up about their problems in a another thread titled “I am suicidal.”
CEL/USD trades at $0.7. Source: TradingView
Numerous reactions to Celsius’ Twitter post from customers allege they have lost access to their life savings as a result of the company’s suspension of withdrawals. “I’m a sole parent. My life’s course will shift as a result. One person tweeted, “I feel nauseous. “Please let me borrow a rope from someone. Another person added, “Celtic just filed bankruptcy for me as well. Another person described how giving the business their money caused them to “lose pretty much everything.”
The troubles of Celsius have also been made worse by a lawsuit brought by a former employee who claimed the company was a Ponzi scheme and lacked adequate safeguards for client investments.
Notably, Voyager, another cryptocurrency lender, filed for Chapter 11 bankruptcy protection after suffering large losses, making Celsius the third cryptocurrency processor to do so in a month. Amidst erratic market conditions, Three Arrows Capital also applied for bankruptcy protection.
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Featured image from Shutterstock, chart from TradingView.com and CoinMarketCap
CEL Token Price Plummets 50% As Celsius Goes Bankrupt
After the Celsius Network’s decision last month to freeze all transactions and withdrawals, the whole cryptocurrency market plummeted into a deep and gloomy sinkhole.
This week there was some good news, when Celsius paid off its remaining $41.2 million debt to the DeFi protocol MakerDAO. This payment allowed Celsius to release $448 million in collateral.
However, it appears that this will be the only positive development from the U.S. crypto lender in the coming days or months.
After weeks of conjecture and hearsay, Celsius’s legal counsels have formally informed regulators that the cryptocurrency lender has filed for Chapter 11 bankruptcy protection.
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CEL Loses Half Its Value After Bankruptcy News
Following the disclosure of bankruptcy, CEL, the native cryptocurrency of Celsius Networks, lost half of its value from its intraday high of 95 cents and down to 45 cents.
In the last month, there has been an increase in the number of cryptocurrency-related failures. After the crypto hedge fund Three Arrows Capital and the crypto lender Voyager Digital, Celsius becomes another domino to fall in the bankruptcy abyss.
Since June 20, the price of CEL has nearly grown four-fold due to what appears to be a fervor caused by futures and derivatives traders. CEL rose from $0.28 on June 15 to $1.56 on June 21, a 456 percent increase compared to the market’s 12.36 percent increase during the same timeframe.
In May, Celsius had only $12 billion in assets, which was about half of what it had at the start of the year. After that, the firm ceased revealing its assets under management (AUM).
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BTC total market cap at $378 billion on the daily chart | Source: TradingView.com
Celsius Was A Crypto Industry Powerhouse
CEL remains under pressure to the downside as it trades roughly 80% below its April 2018 high of $8.
At its prime, Celsius was a cryptocurrency industry titan. It had more than 1.7 million users worldwide and assets of more than $20 billion. The company achieved success as a result of offering investors yields in the range of 18 percent.
What then happens to the CEL token? The value of CEL has decreased significantly since Celsius ceased operations. This does not, however, imply that the token will plunge to zero. Indeed, it could garner renewed attention from pump-and-dump traders.
Meanwhile, Celsius asserts that it has $167 million in ready cash, which will be used to support some operations “during the reorganization process.”
Featured image from CoinQuora, chart from TradingView.com
Voyager can’t guarantee all customers will receive their crypto under proposed recovery plan
The crypto lending firm said that the exact amount reimbursed to users will “depend on what happens in the restructuring process and the recovery of 3AC assets.”
Crypto Biz: Crypto broker goes bankrupt, Bitcoin miner capitulates and China VC funding soars
As the search for an elusive Bitcoin bottom continues, at least one United States miner was forced to liquidate a portion of its holdings in June.
FDIC reportedly scrutinizing Voyager Digital marketing; complex SBF ties come to light
Some Voyager Digital customers did not understand the scope of FDIC protection for their deposits, leading to questions about the firm’s marketing.
Celsius Network hires advisers ahead of potential bankruptcy: Report
Restructuring, bankruptcy, buyouts… media outlets are swarming with different reports on the next steps Celsius may take.
Crypto Biz: Crypto carnage pushes Celsius, Three Arrows Capital closer to insolvency, June 9-16
It has been a chaotic week for digital assets. Two firms may be inching closer to insolvency while Coinbase, one of the largest crypto exchanges, laid off almost a fifth of its staff.
Here’s What Happened at Crypto Lender Cred’s Latest Bankruptcy Hearing
Judge John Dorsey of the Delaware Bankruptcy Court rejected a motion to appoint a Chapter 11 trustee to oversee Cred’s restructuring.
Bad Loans, Bad Bets, Bad Blood: How Crypto Lender Cred Really Went Bankrupt
Cred’s bankruptcy filing mainly blames fraud by an outside party. The full picture painted by former employees is more complex, and highlights the risks of the budding crypto lending market.
Crypto Lender Cred Files for Bankruptcy
In October, the lender published a cryptic letter saying that it has experienced “irregularities” in the handling of “specific” corporate funds by a “perpetrator of fraudulent activity.”
Hedge Funds Failures, Bankruptcies and Pandemic Fatigue
As cases rise and the U.S. settles in for a fresh wave of COVID-19, the economic fallout from round one is still being felt, from hedge funds to bankruptcies and beyond.
