Beleaguered crypto lender Celsius Network has filed a motion with the United States Bankruptcy Court yesterday to allow customers with digital assets held in certain accounts to be withdrawn. There’s a catch, however, as the motion will only apply to Custody and Withold Accounts and for custodied assets worth $7,575 or less in value. Celsius has structured their Custody and Withhold Accounts, which essentially serve as storage wallets, in a way that still enables users to maintain legal ownership of cryptocurrency. This ownership however is not extended to assets held in accounts that offer annual crypto earnings or borrowing services …

According to a document seen by Bloomberg, Zhu delivered the affidavit in person on Aug. 19. In it, Zhu states that Teneo “had not provided an entirely complete or accurate version of events” to the Singapore court, which granted Teneo’s request for access to 3AC records in Singapore on Aug. 22. Teneo, an advisory firm, was appointed in June to liquidate 3AC assets by a court in the British Virgin Islands, where Singapore-based 3AC had moved its registration. The fund had also announced its intention of moving its headquarters to Dubai. According to the affidavit, Teneo misrepresented the operations and …

A New York bankruptcy court has given embattled cryptocurrency brokerage Voyager Digital the green light to pay retention bonuses to key staff members. The firm filed a motion with the United States Bankruptcy Court on Aug. 2 seeking approval for its Key Employee Retention Plan (KERP) which entailed $1.9 million worth of payments to 38 key employees that have been identified as crucial to the exchange’s ongoing operation. Creditors of the firm, which filed for bankruptcy in July 2022, had initially opposed Voyager’s KERP payments in a court filing on Aug. 19 claiming that payments to investors should be prioritized …

The Singapore High Court on Monday approved a petition to recognize the liquidation order against Three Arrows Capital (3AC) issued by a court in the British Virgin Islands, Bloomberg reported Wednesday, citing unnamed sources. The Singapore court’s decision, handed down in private, gives the petitioner the legal ability to request access to 3AC financial records kept in Singapore, where 3AC is based. Teneo, the firm appointed to liquidate the 3AC assets, filed its petition with the court on July 9, saying the crypto hedge fund may have information in its Singapore headquarters about its bank accounts, properties, digital assets and …

Bankrupt crypto lending company Celsius countersued decentralized finance (DeFi) protocol KeyFi and its CEO Jason Stone on Tuesday in the United States Bankruptcy Court claiming Stone misrepresented himself as an expert in DeFi and Stone and KeyFi lost Celsius coins through incompetence and deceit. The suit came several weeks after KeyFi sued Celsius for allegedly failing to honor a profit-sharing agreement. KeyFi provided Celsius with staking services and DeFi strategy. According to the Celsius suit, the defendants allegedly stole millions of dollars in coins from Celsius wallets. Further, Celsius alleges, the defendants bought nonfungible tokens (NFTs) with Celsius coins, without …

Crypto lending platform Celsius Network has filed a lawsuit claiming that custodian Prime Trust failed to turn over roughly $17 million worth of cryptocurrency. In a Tuesday filing with U.S. Bankruptcy Court in the Southern District of New York, Celsius’ legal team brought a complaint against Prime Trust, alleging the company did not return $17 million worth of crypto assets in June 2021 when it terminated its relationship with the lending firm. According to Celsius, Prime Trust acted as crypto custodian for New York- and Washington-based users from 2020 through mid-2021, returning $119 million in crypto following the end of …

Voyager Digital Holdings’ committee of unsecured creditors has filed a motion to object to the firm's proposal to keep its employees by paying them monetary awards for staying in the company. On August 2, Voyager Digital filed a motion to the United States Bankruptcy Court in the Southern District of New York to approve the Key Employee Retention Plan (KERP) that aims to distribute $1.9 million to 38 key employees who were deemed to be very crucial to the operations of the exchange. However, the exchange’s creditors disagreed with the proposal. In a motion filed on August 19, the creditors …

The United States Trustee handling Celsius’ bankruptcy proceedings has called for an independent examiner to be brought in to “untangle” the embattled network’s financial affairs and business operations. In a motion filed on Aug. 18 to the United States Bankruptcy Court by William K. Harrington, the US Trustee has asked for an examiner to look into allegations of “incompetence or gross mismanagement” as well as “significant transparency issues” surrounding Celsius’ operations in the context of the bankruptcy case. Examiners are appointed by bankruptcy courts to investigate details of complex cases brought before them. They are able to present information to …

Celsius CEO Alex Mashinsky reportedly “took control” of trading strategy at the crypto lending firm amid January rumors the United States Federal Reserve planned to hike interest rates. According to a Tuesday report from the Financial Times, Mashinsky personally directed individual trades and overruled financial experts in an effort to protect Celsius from anticipated declines on the crypto market. The Celsius CEO reportedly ordered the sale of “hundreds of millions of dollars” worth of Bitcoin (BTC) in one instance, rebuying the coins less than 24 hours later at a loss. Alex Mashinsky took control of Celsius trading strategy months before …

Embattled crypto lender Celsius Network is on track to run out of money by October, according to the firm’s latest Chapter 11 documents. Filed on Aug. 14 to the U.S. Bankruptcy Court of the Southern District of New York, Celsius highlighted that it is expected to reach negative liquidity by October 2022 to approximately $34 million. The lending platform, which held the trust of many across the world with life savings and retirement funds, was revealed to be in a much worse financial position than originally suggested in July. Court documents revealed this week that Celsius’ three-month cash flow forecast, …

A new bankruptcy coin report filed on Aug. 14 shows that troubled crypto lender Celsius’ actual debt stands at $2.85 billion against their bankruptcy filing claims of a $1.2 billion deficit. The latest report shows that the company has net liabilities worth $6.6 billion and total assets under management at $3.8 billion. While in their bankruptcy filing, the firm has shown around $4.3 billion in assets against $5.5 billion in liabilities, representing a $1.2 billion deficit. The coin report also noted that of the total 100,669 Bitcoin (BTC) deposited by investors, the company has lost 62,853 BTC and currently holds …

Crypto lending platform Celsius Network has an approximately $1.2 billion gap in its balance sheet, with most liabilities owed to its users. In addition, the firm has filed for bankruptcy protection, so its future looks bleak. Still, Celsius Network's native utility token CEL has soared in valuation by over 4,100% in the last two months, reaching around $3.93 on Aug. 13 compared to its mid-June bottom of $0.093. In comparison, top coins Bitcoin (BTC) and Ether (ETH) rallied 40% and 130% in the same period. Takeover rumors behind CEL explosion? Technically, the price rally made CEL an excessively valued token …