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Sunday, December 4, 2022

DOJ Objects To Celsius Plans To Reopen The Withdrawls And To Sell Stablecoins

In the opposition, a delay on Related motions is requested until the external examiners report on the firm is submitted during the course of the following several months.

The proposal by Celsius to liquidate its virtual currency assets and restore withdrawals for a limited number of users has been objected to by the Department of Justice (DOJ).

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The depertment claims that Celcius’ financial situation is not transparent and that important choices like these shouldn’t be made until the external examiner assessment has been submitted.

The DOJ’s action supplements the complaints that the Vermont Department of Financial Regulation, Texas Commission of Banking, and Texas State Securities Board submitted just the other day. All three claim that selling Celsius’ stablecoin assets would put the company at danger of using the proceeds to restart operating outside the law.

DOJ Objections To Celsius Plans Reopen The Withdrawls:

A U.S. Executor for the DOJ, Mr. William Harrington, underlined a reason to object to the openings of Celcius withdrawal effects to its “custody” and “withhold” clients in a submission on September 30 with the Bankruptcy Court for the Southern District of New York, citing a lack of openness regarding the company’s financials.

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The DOJ also has voiced opposition to a prospective sell-off of stablecoins, citing the same worries expressed by Vermont and Texas authorities that Celsius’ motion fails to specifically define “what impact like a redistribution or sale would have” on the company’s future operations.

According to Harrington, the nomination of Shoba Pillay as the examiner was approved by the New York Bankruptcy court on September 29 by the “United States Trustee.”

Pillay should have around 2 months to draught and submit an examiner’s report on Celsius that outlines the company’s assets and liabilities.

The principal Celsius investors, BnkToTheFuture creator Simon Dixon, claimed via Twitter on October 1 that company will seek to pay its debtors in Celsius (CEL) coins as a component of a reorganisation plan, but that this plan “won’t get through authorities & regulatory agencies will submit motions to reject.”

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