Summary:
A recent judgment ruling that the XRP token is a security is unlikely to affect the wind-up plans of bankrupt crypto lender Celsius, according to the lender’s counsel. The ruling could impact creditor repayments for Celsius’ token CEL, but the new company set to take over Celsius’ assets is not engaged in any securities offerings. The counsel stated that the ruling will not have any effect outside of potentially impacting the CEL token. Celsius’ founder and former CEO, Alex Mashinsky, and Chief Revenue Officer, Roni Cohen-Pavon, have been charged with multiple fraud counts. Cohen-Pavon is expected to be terminated soon. Regulators have entered into deals with Celsius to avoid impacting creditor distributions.
Key Points:
– The XRP ruling is unlikely to impact the wind-up plans of Celsius.
– The ruling could affect creditor repayments for the CEL token.
– The new company set to take over Celsius’ assets is not engaged in securities offerings.
– Celsius’ founder and former CEO, Alex Mashinsky, and Chief Revenue Officer, Roni Cohen-Pavon, have been charged with fraud.
– Regulators have entered into deals with Celsius to prevent impacting creditor distributions.
Hot Take:
The recent ruling on XRP being classified as a security may have consequences for Celsius and its token CEL. However, the wind-up plans of Celsius are expected to proceed as scheduled, with the new company focusing on less legally contentious activities. The charges against Celsius’ founder and former CEO, as well as its Chief Revenue Officer, raise concerns but have not halted the wind-up process. Regulators are working to minimize the impact on creditors.
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