{"id":13386,"date":"2023-09-26T04:35:07","date_gmt":"2023-09-26T04:35:07","guid":{"rendered":"https:\/\/cryptoheretostay.com\/?p=13386"},"modified":"2023-09-26T04:35:09","modified_gmt":"2023-09-26T04:35:09","slug":"sec-objects-to-coinbases-proposed-role-in-celsius-bankruptcy-plan","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=13386","title":{"rendered":"SEC objects to Coinbase\u2019s proposed role in Celsius bankruptcy plan"},"content":{"rendered":"<p> <script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<\/p>\n<p>The U.S. Securities and Exchange Commission (SEC) on Sept. 23 filed an objection to part of a reorganization plan advanced by bankrupt crypto firm Celsius.<\/p>\n<p>That filing indicates that Celsius aims to have the crypto exchange Coinbase act as a distribution agent and return funds to former users affected by its collapse. To that end, Celsius is seeking approval of a related agreement in bankruptcy court.<\/p>\n<p>However, the SEC contends that the role Coinbase is expected to play, as per the filing, surpasses the typical duties of a distribution agent. The regulator also highlighted inconsistencies: Celsius has stated that it does not intend for Coinbase to provide brokerage services, but its agreement with Coinbase suggests that such services will in fact be provided.<\/p>\n<p>The securities regulator said it believes that the two companies have an additional agreement that they intend to file under seal. The regulator argued that, if there is a new agreement, that agreement should be provided to it and to the court.<\/p>\n<p>The SEC added that some trading services described within the agreement are related to various concerns that it raised in its June 6 lawsuit against Coinbase.<\/p>\n<p>Paul Grewal, Coinbase&#8217;s chief legal officer, commented on the matter on Sept. 25.\u00a0 Grewal wrote that his firm is &#8220;proud to engage with Celsius to distribute crypto back to its customers.&#8221; He also questioned why the SEC is opposed to the distribution plan and said that his firm will address the matter within Celsius&#8217; bankruptcy proceedings.<\/p>\n<p>Celsius originally halted withdrawals in June 2022 and filed for bankruptcy about one month later in July. A <em>Forbes<\/em> report at that time suggested that the company owed $4.7 billion to creditors, including retail users but excluding institutional partners.<\/p>\n<h2>SEC concerns also extend to CEL token<\/h2>\n<p>The SEC noted that it has put forward allegations around Celsius&#8217; CEL token in a securities fraud case. That case began in July and is separate from the bankruptcy case.<\/p>\n<p>In the fraud case, the SEC alleges that Celsius and its former CEO Alex Mashinksy offered and sold the CEL token in unregistered and fraudulent security offerings.<\/p>\n<p>Now, as part of its latest complaint in the bankruptcy case, the SEC has asked the court to rule on whether CEL is a security. It also asked for the effects of this ruling to be limited to the dispute over Celsius&#8217; distribution plan. The regulator said that any broader ruling could &#8220;impede and jeopardize&#8221; its separate securities case against Celsius.<\/p>\n<p>The post SEC objects to Coinbase&#8217;s proposed role in Celsius bankruptcy plan appeared first on CryptoSlate.<\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cryptoslate.com\/sec-objects-to-coinbases-proposed-role-in-celsius-bankruptcy-plan\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The U.S. Securities and Exchange Commission (SEC) on Sept. 23 filed an objection to part of a reorganization plan advanced by bankrupt crypto firm Celsius. That filing indicates that Celsius aims to have the crypto exchange Coinbase act as a distribution agent and return funds to former users affected by its collapse. To that end, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":13387,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[3],"tags":[],"class_list":["post-13386","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ethereum-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/13386","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13386"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/13386\/revisions"}],"predecessor-version":[{"id":13388,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/13386\/revisions\/13388"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/13387"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13386"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13386"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13386"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}