Judge Denies Separate Class of Stakeholders in Celsius Network Bankruptcy Case
Judge Martin Glenn has denied the request for establishing a separate class of stakeholders in the Celsius Network bankruptcy saga. This decision, revealed in a document filed on August 25, also sidestepped the crucial question of whether the CEL token qualifies as a security.
Key Points:
- An investor approached the court advocating for a separate legal class for Celsius Network’s investors.
- Judge Glenn refuted the request for representation and declined to declare CEL token as “not a security.”
- The judge’s decision does not represent a ruling on whether crypto tokens or associated transactions are securities under federal securities laws.
- Celsius’ management plans to value CEL at $0.25 to expedite the sale to crypto consortium Fahrenheit.
- Token holders argue that CEL should have retained its value at $0.80 during the bankruptcy.
Hot Take: The denial of a separate class for stakeholders in the Celsius Network bankruptcy case is a blow to investors seeking representation. The decision also leaves the question of whether CEL token is a security unanswered. The valuation of CEL remains contentious, with Celsius’ management planning to sell it at $0.25 despite some token holders believing it should be valued higher. The court’s acknowledgment of alleged market manipulation adds further complexity to the situation.
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