Insolvency process Celsius: Ripple buys the crypto company?

The assets of the insolvent crypto firm Celsius may be taken over by Ripple, a spokesperson for the company announced.

Ripple, itself plagued by the US Securities and Exchange Commission (SEC), is showing interest in buying Celsius assets. According to a spokesperson for Ripple, the company sends out sensors:

“We want to learn about Celsius and its assets to assess whether they could be relevant to our business.”

The spokesman did not provide any information on the full takeover of the insolvent loan servicer.

Celsius bankruptcy attracts interested parties

After denying withdrawals in June, the crypto firm filed for bankruptcy in a New York court last month. It has since been revealed that there is a $1.19 billion hole in the balance sheet and no one knows if the company will ever get back on its feet.

So surprisingly, Ripple’s lawyers filed last week to be involved in the ongoing bankruptcy proceedings. Since the court approved the application, the crypto company can now get an overview of the potential purchase objects.

It is also known from court documents that Ripple is not one of Celsius’ creditors. It is not known which specific assets arouse interest. Liquidity reserves, the internal CEL token, cryptocurrencies, a mining company and digital assets owned by third parties will be considered.

Ripple’s problems with the SEC are not going away

The sixth largest crypto company The world itself has been at war with the SEC since 2020. According to the SEC, the company issued unregistered securities (the XRP token) worth $1.3 billion in 2012.

Although Ripple was not blamed, the course has often suffered in the past due to the process. When it comes to bad news, it usually takes a quick swim, only to resurface when it comes to good news.

The SEC’s decision is eagerly awaited in the crypto space, as it could set the pace for monitoring future crypto offerings.

The XRP price is currently priced at $0.38 with a market cap of around $18 billion.

Lending service with legal difficulties

Before users could withdraw their cryptocurrencies from Celsius accounts and without any warning, the service suspended all withdrawals in June. Now some users of the service are grouping together to file a lawsuit against the lending service. The 300 users who joined together have now been able to collect almost 100,000 US dollars – they assigned the lawyer Kyle J. Ortiz to file a case with a well-known law firm.

The plaintiffs are reclaiming their cryptos deposited solely for safekeeping. While the users themselves remain the owners of the escrow cryptos, this is not the case with the interest-bearing Earn program. The stored cryptocurrencies are said to be around 180 million US dollars.

However, according to an online portal, this is not the only lawsuit filed against Celsius. US law firm Bragar Eagel & Squire, PC, which accuses the company of violating US securities laws, is also filing a class action lawsuit against Celsius. By breaking the law, the company blindsided customers and tempted them to invest, the law firm said.

The CEL token has since recovered from its $0.36 hole in June and is currently trading at $2.40. The upturn in the crypto market has also made itself felt at Celsius.

Disclaimer

All information on our website has been investigated to the best of our knowledge and belief. The journalistic contributions are for general information purposes only. Any action taken by the reader based on the information on our website is entirely at his own risk.

Leave a Comment