Celsius Network Bankruptcy

8/25/2023 11:00:34 PM

(MENAFN- CoinXposure) In the CelsNetwork bankruptcy saga, Judge Martin Glenn has denied the request to create a distinct class of stakeholders .

This decision, disclosed in a document filed on August 25, also avoided whether the CEL token is a security.

In July, investor Otis Davis petitioned the United States Bankruptcy Court for the Southern District of New York for a unique legal classification for CelsNetwork's investors.

This action was intended to distinguish them from the company's employees and customers. Davis's argument highlighted the court's need to declare CEL“not a security.

He drew parallels to the recent SEC v. Ripple case, in which, according to him, the XRP token was not considered a security.

However, in a prompt response, Judge Glenn rejected these petitions within eleven days of the August 14 argument presentation.

In addition, Judge Glenn emphasized that the current order does not represent a decision under the federal securities statutes regarding the securities staof crypto tokens or associated transactions.

Consequently, he preserved a clear path for the U.S. securities and exchange commission to challenge such crypto transactions on varigrounds.

In their proposal, Celsius's management intends to value CEL at $0.25. As part of their strategy to expedite the transfer to the crypto consortium Fahrenheit and return funds to their creditors, they have taken this action.

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This valuation increased slightly from its previrate of $0.20, and Glenn has recently endorsed it.

Nonetheless, some token holders believed CEL should have maintained its $0.80 value when Celsdeclared bankruptcy .

With allegations of market manipulation, however, the court indicated that a zero valuation was not out of the question.

The company's counterargument asserted that trading prices were not an accurate reflection of the market because the CEL market was allegedly manipulated.

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