- Celsius started liquidating holdings of LINK, BNB, 1INCH, BONE, ZRX among other cryptos after SEC brought charges against the lender.
- The $25 million worth of crypto liquidation is likely related to a US judge's authorization from bankruptcy court.
- The bankrupt crypto lender held approximately $164.5 million worth of altcoins on the Ethereum Virtual Machine chain.
Bankrupt crypto lender Celsius Network started liquidating some of its assets on Monday after receiving authorization from the bankruptcy court as the US Securities and Exchange Commission (SEC) has charged the entity and its former CEO Alex Mashinsky for violation of federal securities laws.
The firm has been accused by a former money manager of running a Ponzi scheme.
Also read: Former Celsius CEO Alex Mashinsky arrested by DoJ and sued by SEC, CFTC and FTC
Celsius begins crypto liquidations while battling SEC allegations
The US SEC charged bankrupt crypto lender Celsius Network and founder Alex Mashinsky with the violation of the registration and anti-fraud provisions of the federal securities laws.
The crypto lender is battling accusations of running a ponzi scheme, gross mismanagement of customer deposits and manipulation of crypto markets, among other charges.
While tackling the legal challenges facing the firm, Celsius received authorization from bankruptcy court to start liquidating its crypto holdings starting July 1. The entity is likely to utilize these funds towards paying back creditors.
Crypto intelligence tracker Lookonchain noted that Celsius has started liquidating its holdings, starting with $25 million worth of assets on Monday. On-chain analytics show that Celsius sold 1.27 million LINK worth $8.5 million, 2.83 million SNX worth $7.84 million, 12,597 BNB worth $3 million, 4.45 million 1INCH tokens worth $2.26 million, and 8.53 million ZRX tokens worth $1.9 million. Moreover, FTX and BONE tokens worth $948,000 were transferred to exchanges for liquidation.
Celsius crypto liquidation
SEC charges are geared towards Celsius Earn Interest program
According to the US financial regulator’s complaint, from 2018 to June 12 2022, Celsius offered to investors a crypto lending product, the Earn Interest Program. This program allowed users to tender their crypto assets in exchange for interest payments.
The regulator argues that the program constitutes the offer and sale of unregistered securities. Celsius is tackling the SEC’s charges against its firm and working on bankruptcy proceedings to return creditor funds.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.