This is a quick update about the status of the chapter 11 bankruptcy filled by Celsius Network earlier this year in June 2022, and also the plan proposed by the Bitcoin veteran investor Simon Dixon that could possibly fix this mess caused by Celsius CEO Alex Mashinsky and other Celsius executives deceiving public about what Celsius company actually is and what happens with coins and tokens deposited in the app.

In the meantime, Simon Dixon is fighting along with the community of depositors, borrowers, and lenders. With that being said, if you are one of the depositors and want the best case scenario for everyone who is a victim to come forth please join Simon Dixon and others on YouTube and Twitter where Simon discusses and forms the best future plan with others.

Simon Dixon YouTube – https://www.youtube.com/c/SimonDixonBF

Simon Dixon Twitter – https://twitter.com/SimonDixonTwitt

 

Celsius Bankruptcy Official Court Hearing October 2022

In a recent filing, Celsius Bankruptcy claimed that its customers had “loaned” money to the company, not “deposited” it. This means that customers who had borrowed money from Celsius must be listed as creditors in the bankruptcy case. This is a critical point because Celsius has been using the word “deposit” in its marketing campaigns. Simon Dixon, however, disagreed with this characterization. In the filing, Celsius listed over a hundred thousand creditors with Simon Dixon being the 21st largest depositors of crypto in the app.

Celsius’s bankruptcy filing also includes extensive information on its executives. The documents show that its ex-CEO, Alex Mashinsky, cashed out $10 million of crypto-assets before the filing began. In addition to this, the bankruptcy documents reveal that Mashinsky quit the company in September. While this news may be good news for the company’s creditors, it will not ease their pain. This is why the US trustee of the case, William Harrington, objected to Celsius’ redaction motion, saying that the bankruptcy case requires disclosure of all relevant information.

Celsius filed for Chapter 11 bankruptcy protection 89 days after introducing the custodial wallet. This means that any funds that were transferred 90 days before the filing date might be subject to clawback under U.S. law. Although there was no ruling on this issue at this hearing, the various parties were able to provide their feedback during the three-hour hearing. However, it remains unclear whether Celsius will be able to get its money back. If the court grants Celsius’s motion to withdraw the funds, the assets will be returned to the custodial account holders.

After the company filed for bankruptcy, a creditors committee called UCC was formed. The group is made up of people who lost money through Celsius, including those who made deposits in the company. The committee aims to help these creditors recover their crypto assets. As of now, the company has more than a hundred thousand creditors, including customers and lending counterparties. FTX’s CEO Sam Bankman-Fried has joined the group as a creditor. Celsius has been one of the biggest players in the crypto lending market, with over $8 billion in loans to its customers and $12 billion in assets under management as of May. It had 1.7 million customers as of June. It also offered interest-bearing accounts, with yields as high as 17 percent.

The case is still in its early stages, and the company will have to file a report within a month. It is expected that the court will order an independent examiner to examine Celsius’s finances. The independent examiner is set to deliver a report on December 10. Celsius also asked the bankruptcy court to approve bidding procedures for its assets, but its motion failed to identify which assets will be sold. Additionally, the company’s motion is vague on whether or not it intends to continue its crypto mining business.

In addition to the DOJ’s request, several other parties have asked for additional oversight measures. Some have called for the appointment of a Chapter 11 trustee and state securities regulators. The DOJ and state securities regulators are also investigating the company, citing potential securities fraud, mismanagement, and market manipulation. Celsius also has the support of a creditors’ committee in the case, which has already begun investigating many aspects of the DOJ’s original request.

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Why You Should Look Into Cryptocurrency Lending

Cryptocurrency lending is a new phenomenon that has exploded in popularity over the last few years. It’s a way for people to make money by lending their cryptocurrency out for interest, and it’s gaining momentum as more people realize its benefits.

What is cryptocurrency lending?

Cryptocurrency lending involves sharing your cryptocurrency with others so they can use it for whatever purpose they wish. Instead of keeping it yourself, you loan it out to someone else—someone who will pay you interest on the loan. 

This person can then use your cryptocurrency to buy something in their local currency or other cryptocurrencies like Bitcoin (BTC) or Ethereum (ETH).

How Does Cryptocurrency Lending Work?

Cryptocurrency lending works like a peer-to-peer loan, with one key difference: Instead of using dollars or other fiat currencies, you use cryptocurrencies. This means that instead of getting interest payments in your bank account, you get them in bitcoin or ether.

What Are the Benefits of Cryptocurrency Lending?

Cryptocurrency lending is a great way to earn some passive income and comes with many benefits.

There are many reasons why cryptocurrency lending is beneficial.

It’s Easy to Get Started

With a cryptocurrency lending platform, you can start funding your loan in just a few minutes—no need to scour the web looking for lenders, no need to fill out endless forms. Instead, you choose the loan amount and duration and then decide on a personal or business loan. The process is simple, so you can start earning interest right away!

It Has Flexible Loan Terms

Cryptocurrency lending is an emerging niche that offers investors a new way to make money. Instead of investing in stocks, bonds, or other traditional investment vehicles, you can lend money to others who need it for short-term purposes. 

When you apply for a loan, you can select whether to accept a long-term or short-term loan. Long-term loans have lower interest rates but higher monthly payments. In comparison, short-term loans have higher interest rates but lower monthly payments.

This gives you the flexibility to ensure you only pay what you can afford so you don’t end up with a mortgage payment that’s too high for your budget.

Low-Interest Rates

When you go to a bank, they will typically charge you a high-interest rate because they understand that most people don’t have the money to pay them back immediately. They also know that if you can’t pay them back, they’ll take your house or car away from you to get their money back.

With cryptocurrency lending, however, you don’t have to worry about this type of thing happening because cryptocurrencies are all digital currencies—they aren’t physical objects like houses or cars! 

And because there’s no physical property involved (unlike banks), lenders don’t need collateral to lend money out. So if someone defaults on their loan—which happens sometimes—the lender doesn’t lose anything but the principal amount of their loaned funds.

There’s No Need for Credit Checking

There’s no need for credit checking in cryptocurrency lending because they are running on decentralized network protocol. This means they’re not controlled by any single person or group, which means anyone can participate in the transaction.

In traditional lending, you would have to check your credit score to know if you could get a loan or not. You would also have to pay fees for that service, which adds up if you’re applying for many loans or if your credit score is low enough that you can’t get approved for any loans.

But with cryptocurrency lending, there’s no need for this checking because it’s based on your reputation as a borrower rather than on your credit score.

You Have Your Choice of Loan Currency

Lending money is a big deal. It’s not just about the amount you’re taking on but also where the currency of that loan comes from.

If you have a choice in currency, it means that your lender will let you borrow in any of the currencies they support—and that can make a huge difference when it comes time to pay back your loan.

If you choose to pay in USD, for example, then you’ll only have to convert your crypto into USD if you want to cash out. This can be a huge benefit if you’re looking for somewhere to hold onto your crypto until its value increases again.

But suppose you choose to pay in ETH, BTC, or any other cryptocurrency. In that case, you don’t need to worry about converting it back at all—you can use it as payment for whatever service or good you were buying with your loaned money!

Conclusion

In conclusion, cryptocurrency lending is a great way to make money in the cryptocurrency market. It’s easy to start and can give you a chance to diversify your portfolio or even use it as an investment vehicle.

The technology behind cryptocurrency lending has come a long way and will only improve. Cryptocurrency lending is one of those rare cases where the technology is so innovative that it’s changing the world around us—and that can be exciting! Visit our blog today if you’re interested in learning more about cryptocurrency trading, investing, or lending, or what is the future move of the bitcoin and other crypto in order to stay safe in this risky volatile but profitable market.

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Want to learn more about making money with crypto, also read about The Plan by Dan Hollings.