The United States Bankruptcy Court for the Southern District of New York has granted approval for Celsius Network, a bankrupt cryptocurrency lender, to convert its altcoins into Bitcoin.
The decision was made by Judge Martin Glenn, and the liquidation process will pave the way for the distribution of funds to creditors in the near future.
The approval of this proposal came after extensive discussions between Celsius and the U.S. Securities and Exchange Commission (SEC).
According to the ruling of the bankruptcy judge, the struggling lender is now authorized to sell or convert any cryptocurrency assets, with the exception of tokens associated with Withhold or Custody accounts, into Bitcoin (BTC) or Ether (ETH) starting from July 1, 2023.
Celsius Network faced bankruptcy in 2022 following the collapse of the Terra ecosystem, which affected its Terra (LUNA) and TerraUSD (UST) tokens.
Creditors have been awaiting a resolution since the bankruptcy filing several months ago, and this recent approval opens up new possibilities and extends the ongoing proceedings.
In light of the recent regulatory crackdown by the SEC on altcoins, which the regulator has categorized as securities, many cryptocurrency companies are opting to convert their altcoins into BTC and ETH.
Notable altcoins that have been labeled as securities by the SEC include Cardano.
Despite the ongoing bankruptcy proceedings, Celsius Network was acquired by the crypto consortium Fahrenheit in May 2023.
Under the stewardship of its new owners, the network continues to operate.
The new owners have announced their intention to develop a revised bankruptcy plan, although specific details of these plans have not yet been disclosed.
However, it is now clear that the assets will be exclusively distributed in Bitcoin and Ether.
Following Celsius Network’s bankruptcy, other companies in the cryptocurrency industry, such as Voyager Digital and FTX, have also faced financial challenges.
As a result, they have been exploring unique strategies to address the demands of their creditors for reimbursement.
In summary, the United States Bankruptcy Court’s approval for Celsius Network to convert its altcoins into Bitcoin marks a significant step towards resolving the lender’s bankruptcy proceedings.
With the involvement of the SEC and the acquisition by Fahrenheit, the network is now moving forward under new ownership and is expected to distribute its assets in BTC and ETH.
This development reflects a broader trend in the industry as crypto companies grapple with regulatory concerns and seek solutions to address creditor demands.
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Three committee chairs in the United States House of Representatives have expressed their dissatisfaction with the response received from U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler regarding their inquiry into recordkeeping requirements.
Judiciary Committee Chair Jim Jordan, Oversight Committee Chair James Comer, and Financial Services Committee Chair Patrick McHenry issued a letter demanding a more satisfactory response, stating that Gensler’s reply did not address their direct requests.
The congresspeople, joined by Rep. Tom Emmer, were prompted to take action following a Wall Street Journal report that criticized the SEC and other agencies for inadequate recordkeeping.
The report highlighted the use of chats by government officials for official business, which were not being searched to fulfill Freedom of Information Act requests.
The recent letter reiterates the original requests and includes a demand for an explanation if Gensler does not intend to comply.
The letter, dated June 28, also points out inconsistencies in Gensler’s publicly accessible meeting schedules in 2021 and makes mention of cryptocurrency.
Gensler faced additional criticism related to cryptocurrencies when the Blockchain Association released a paper suggesting that he should recuse himself from digital asset enforcement decisions.
The paper claimed that the SEC had neglected its role as a rulemaking body in the digital asset space.
It specifically raised concerns about the SEC’s stance on whether digital assets other than Bitcoin qualify as securities and whether digital asset trading platforms are considered unregistered securities exchanges.
The paper argued that Gensler had shown bias in his statements, asserting that he had already formed opinions on these matters.
The paper reminded recipients of Wells notices, who are individuals or entities facing potential SEC enforcement actions, that they could seek Gensler’s recusal either through the SEC or in federal court.
In summary, three committee chairs have expressed their dissatisfaction with the SEC Chair’s response to their inquiry into recordkeeping requirements, citing unaddressed requests.
This comes in the wake of criticism regarding the SEC’s recordkeeping practices and Gensler’s handling of digital asset enforcement decisions, prompting calls for his recusal in certain cases.
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The United Kingdom is on the verge of passing a bill that will subject cryptocurrencies to the same regulations as traditional assets, signaling a significant milestone for the local crypto community.
This legislation, known as the Financial Services and Markets Bill, has received approval from the upper chamber of the U.K. parliament on June 19 and is now awaiting King Charles’ royal assent, the final step required for a parliamentary bill to become law.
Discussions surrounding the bill began in the British Parliament back in July 2022, and its enactment is expected to bring about legal clarity and support the wider adoption of cryptocurrencies in the country.
Under the new law, the Treasury, Financial Conduct Authority (FCA), Bank of England, and Payments Systems Regulator will be granted the authority to establish and enforce regulations for crypto businesses.
The introduction of this legislation reflects the U.K.’s ambition to leverage the advantages of blockchain technology for the private sector and the overall economy.
Andrew Griffith, the economic secretary to the U.K. Treasury, expressed the country’s desire to enable firms to fully utilize the opportunities presented by crypto assets through appropriate regulatory measures.
The long-term vision is to create an environment that allows businesses to maximize the potential benefits derived from cryptocurrencies.
Furthermore, this regulatory framework could serve as a catalyst for attracting more crypto firms to the U.K., particularly in light of the increasingly stringent regulatory environments observed worldwide.
A recent example is venture capital firm Andreessen Horowitz (A16z), which announced the establishment of its first office outside of the United States in London.
This decision followed productive discussions with the U.K. prime minister, policymakers, and the FCA, with the firm’s crypto founder and managing partner, Chris Dixon, highlighting the appeal of a predictable business environment as a key factor behind the expansion.
The impending passage of the Financial Services and Markets Bill in the U.K. signifies a pivotal moment for the crypto community within the country.
By bringing cryptocurrencies under the same regulatory framework as traditional assets, the new law aims to provide legal clarity and foster the growth of the crypto industry.
This move positions the U.K. as an attractive destination for crypto firms seeking a supportive regulatory environment, potentially paving the way for further advancements in the adoption and utilization of cryptocurrencies in the nation.
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The Chicago Mercantile Exchange (CME) Group revealed its intention to launch Ether/Bitcoin Ratio futures on June 29.
The introduction of these futures contracts is scheduled for July 31, pending regulatory approval.
The settlement of Ether/Bitcoin Ratio futures will be in cash, determined by the final settlement price of CME Group’s Ether (ETH) futures divided by the final settlement price of CME Group’s Bitcoin (BTC) futures.
Additionally, this new contract will follow the same listing cycle as CME Group’s Bitcoin and Ether futures contracts.
Giovanni Vicioso, CME Group’s global head of cryptocurrency products, highlighted the potential for relative value trading opportunities between Ether and Bitcoin.
While these assets have traditionally exhibited a strong correlation, their market dynamics may now differ, enabling investors to capitalize on their performance variances. Vicioso stated:
“By introducing Ether/Bitcoin Ratio futures, investors can gain exposure to both ether and bitcoin in a single trade without taking a directional view.
This new contract will facilitate opportunities for a wide range of clients seeking to hedge positions or execute various trading strategies, all in an efficient and cost-effective manner.”
CME Group initially entered the cryptocurrency market in December 2017 by launching the first Bitcoin futures contract.
In February 2021, they expanded their offerings by introducing an Ether futures contract. Recognizing the growing demand for cryptocurrency investment opportunities, CME Group further broadened its product range in 2022 with the introduction of micro BTC and ETH futures contracts, providing traders with additional options to engage in these digital assets.
On April 17, CME Group unveiled plans to enhance its cryptocurrency options by introducing new options for standard and micro-sized Bitcoin and Ether contracts.
These contracts were expected to be available from May 22, pending regulatory review.
This expansion included daily expiries from Monday to Friday, allowing traders to better manage short-term price risks associated with Bitcoin and Ether.
The aim was to provide market participants with increased precision and flexibility in managing the short-term price volatility of these digital assets.
Explore The Latest Crypto News Today
Maple Finance, a Web3 lending platform, has unveiled the launch of its direct lending program, aimed at replacing the services previously offered by now-defunct lenders such as Celsius and BlockFi.
The platform’s development team shared a fact sheet on June 28, highlighting their intention to roll out the first lending pool in July.
Maple Finance serves as a blockchain institutional capital marketplace, facilitating loans for Web3 businesses seeking funds for product launches and expansions.
Previously, the platform relied on credit professionals known as “pool delegates” to provide capital for these loans.
Notably, Celsius utilized Maple to establish a Wrapped Ether (WETH) lending pool in February 2022.
However, during the bear market of 2022, several prominent Web3 lenders faced bankruptcy. Celsius ceased operations in July, followed by BlockFi in November, and Genesis in January.
In response, Maple Finance’s team announced on June 28 that they would step into the role of a lender on the platform in certain cases.
Leveraging their credit underwriting expertise, they will source capital from institutional allocators to support creditworthy borrowers.
This means that individuals who are unable to secure loans from other providers may have the opportunity to obtain them through Maple’s new program, Maple Direct.
According to the team, this program is necessary due to the exit of major Web3 lenders from the space, with traditional lenders lacking the required focus and expertise to underwrite for innovative Web3 technology firms.
The first direct lending pool will focus on infrastructure, asset management, and liquidity providers. Capital allocators, including Crypto Funds, DAOs, VCs, HNWI, Yield Aggregators, and Family Offices, have been invited to participate in the program and earn yield on their investments.
The announcement emphasized that Maple will continue expanding its existing services, indicating that Maple Direct will not replace the current platform, which features competing lenders.
In the past, Maple Finance faced challenges due to the bankruptcies of FTX and Alameda Research in November.
One borrower, Aurus Global, experienced payment issues as a result, and Maple severed ties with Orthogonal Trading over perceived misrepresentations.
However, the platform quickly rebounded, releasing version 2.0 of its software in December.
With its direct lending program, Maple Finance aims to fill the void left by the collapse of major Web3 lenders and provide creditworthy borrowers with the necessary capital for their projects.
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Manchester, UK, June 30th, 2023, Chainwire
Manchester City and OKX, one of the leading crypto exchanges by trading volume and a leading Web3 technology company, today announced OKX as the Club’s Official Sleeve Partner in a new multi-year agreement.
As part of the expanded deal, the OKX brand will feature on the left sleeve of both the men’s and women’s first team playing kits and will retain its position on the left sleeve of the first team training kits, in addition to appearing across further digital and physical club assets.
OKX’s partnership with Manchester City began in March 2022, first expanding in July 2022 to become the Club’s Official Training Kit Partner for the 2022/23 season. To date, the partnership has helped introduce the brand to millions of football fans around the world through innovative Web3 experiences like the OKX Collective, through which fans can get up-close-and-personal with Manchester City players and OKX Ambassadors such as Jack Grealish and Alex Greenwood.
The partnership expansion was unveiled at an exclusive reveal at the Etihad Stadium featuring City Football Group Chief Executive Officer Ferran Soriano and OKX Global Chief Marketing Officer Haider Rafique. As part of the event, the sleeve was unveiled in a ‘virtual reveal’ with a hero video featuring player avatars. Manchester City legend Gaël Clichy was also in attendance for a media Q&A.
In a session moderated by Manchester City presenter Natalie Pike, Rafique and Soriano spoke about OKX’s vision of reaching City fans around the world through the partnership. They also discussed the role Web3 technology can play in fan engagement, especially when it comes to designing engaging, immersive experiences for fans.
Ferran Soriano, Chief Executive Officer at City Football Group, said: “We are very proud to have OKX represented on the sleeve of the Manchester City shirt. Both OKX and Manchester City are leading companies driven by a passion for innovation. We have already seen great Web3 experiences designed by OKX for Manchester City’s global fan base and there will be many more to come. This is a very exciting partnership.”
Haider Rafique, CMO at OKX, said: “The journey with the Man City team has been incredible. Manchester City was our first official global brand partnership and in just a year and a half we have come a long way. We always intended to integrate with the sport and help the Club lead on leaning into Web3. Fast forward fifteen months, we now have a metaverse, an NFT initiative and a number of other new projects that we are excited about.
The sleeve partnership brings us closer to City fans across the globe, and we look forward to collaborating to create unique, exciting and innovative engagements through Web3 technology. As the Club’s Official Cryptocurrency Exchange Partner, fans can expect amazing things every time they interact with OKX.”
About OKX
OKX is a world-leading technology company building the future of trading and Web3. Its leading self-custody solutions include the Web3-compatible OKX Wallet, which allows users greater control of their assets while expanding access to DEXs, NFT marketplaces, DeFi, GameFi and thousands of dApps.
OKX partners with a number of the world’s top brands and athletes, including: English Premier League champions Manchester City F.C., McLaren Formula 1, The Tribeca Festival, Olympian Scotty James, and F1 driver Daniel Ricciardo.
OKX is committed to transparency and security and publishes its Proof of Reserves on a monthly basis.
To learn more about OKX, download our app or visit: okx.com
About Manchester City Football Club
Manchester City FC is an English Premier League club initially founded in 1880 as St Mark’s West Gorton. It officially became Manchester City FC in 1894 and has since then gone onto win the UEFA Champions League, European Cup Winners’ Cup, nine League Championship titles, seven FA Cups and eight League Cups. Manchester City FC is one of 13 clubs comprising the City Football Group.
Under manager Pep Guardiola, one of the most highly-decorated managers in world football, the Club plays its domestic and UEFA Champions League home fixtures at the Etihad Stadium, a spectacular 53,500 seat arena that City has called home since 2003. Today, the stadium sits on the wider Etihad Campus, which also encompasses the City Football Academy, a state-of-the-art performance training and youth development facility located in the heart of East Manchester. Featuring a 7,000-capacity Academy Stadium, the City Football Academy is also where Manchester City Women’s Football Club and the Elite Development Squad train on a daily basis and play their competitive home games.
Disclaimer
OKX IS NOT REGULATED BY THE FCA, THUS, PROTECTIONS SUCH AS THE FINANCIAL OMBUDSMAN SERVICE OR FINANCIAL SERVICES COMPENSATION SCHEME WILL NOT BE AVAILABLE. YOU SHOULD CONSIDER WHETHER YOU UNDERSTAND HOW CRYPTO WORKS AS THE VALUE OF YOUR ASSETS, INCLUDING STABLECOINS, CAN INCREASE OR DECREASE AND PROFITS MAY BE SUBJECT TO CAPITAL GAINS TAX. PAST PERFORMANCE DOES NOT INDICATE FUTURE RESULTS.
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Italy’s top banking authority is advocating for a robust and risk-based regulatory framework for stablecoins in order to prevent a worst-case scenario of a “run” on stablecoins.
The central bank’s latest report, titled “Markets, Infrastructures and Payment Systems” for June, emphasizes the need for regulators to apply financial conduct standards to stablecoin issuers.
The report highlights the significant consumer harm caused by the rise of cryptocurrencies and the boom and bust cycles experienced in an unregulated environment.
The Italian bank considers stablecoin issuers to be a priority for regulatory attention due to their close connection to decentralized finance (DeFi).
It asserts that implementing a strong and risk-based regulation of stablecoins is crucial to reduce the fragility of the DeFi ecosystem, given the asset class’s prominent role in decentralized finance.
Furthermore, the report states that stablecoins have not proven to be stable at all, citing the collapse of Terra’s algorithmic stablecoin, TerraClassicUSD (USTC), in May 2022.
The bank argues that the industry needs to dispel the “decentralization illusion” by recognizing that many decentralized protocols are controlled by core stakeholders who often benefit disproportionately.
The Italian banking authority suggests that such projects should be required to operate within traditional, accountable business structures before participating in the regulated financial sector.
However, the report clarifies that not all crypto assets or activities should be subject to financial services regulation.
It proposes that regulation should primarily focus on those crypto assets that serve customers’ financial needs through payment or investment functions.
In addition to financial applications, the report acknowledges the non-financial use cases enabled by blockchain technology, including decentralized identification, real estate, supply chain management, voting, and carbon credits.
Italy’s central bank also emphasizes the importance of international cooperation and the establishment of an international regulatory framework.
Since the technology operates beyond national borders, a coordinated effort is necessary to effectively regulate the crypto industry.
In conclusion, Italy’s top banking authority calls for a robust and risk-based regulatory approach to stablecoins, highlighting the need to prevent “runs” on stablecoin issuers.
It emphasizes the connection between stablecoins and DeFi and advocates for synchronization in policy interventions.
The report also emphasizes the importance of dispelling the illusion of decentralization and suggests international cooperation for the establishment of a regulatory framework.
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The Sui network and its native SUI token have faced allegations of unlocking and “dumping” SUI staking rewards on Binance, but the team behind the project has vehemently denied these claims.
In a series of tweets on June 27, the Sui Foundation refuted the accusations and stated that no staking rewards or other tokens from locked or non-circulating staked SUI were sold on Binance or any other platform.
The foundation emphasized that all insider token allocations adhere to the lock-up periods and transfer restrictions set forth in their contracts.
Sui operates as a decentralized proof-of-stake blockchain, allowing users to stake their SUI tokens in exchange for more SUI through the proof-of-stake mechanism.
Unlike some other platforms, Sui does not impose a minimum staking period.
The foundation’s denial came in response to claims made by a pseudonymous crypto commentator known as DeFiSquared on Twitter.
DeFiSquared alleged that the Sui Foundation had been transferring staking rewards from locked and non-circulating SUI to Binance without any restrictions.
While Sui argued that the transactions were subject to contractual lock-ups, DeFiSquared argued that the SUI tokens could be unlocked without limitations.
DeFiSquared further claimed that the Sui Foundation’s wallet address, “0x341f,” transferred 3.125 million SUI tokens in staking rewards to three separate addresses, which eventually ended up on Binance after multiple transfers.
They speculated that this process was done to obscure the selling or potentially distribute the funds among team members.
The commentator also raised concerns about SUI’s sell pressure and alleged that the foundation was inflating the token supply by approximately 20% per month for non-foundation token holders.
Sui’s blockchain aims to provide users with high transaction throughput at low fees, as outlined by Mysten Labs, the creators of the Sui Foundation.
At the time of writing, the SUI token has a market capitalization of $427.7 million, with approximately 604 million tokens in circulation.
Its current trading price is $0.70, reflecting a 2.4% decline in the past 24 hours.
The Sui Foundation has announced its intention to release a detailed projection of the token release schedule soon.
According to the tokenomics dashboard Token Unlocks, the next unlock of 61 million tokens ($43 million) is slated for June 3.
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Global investment firm BlackRock, known for managing $10 trillion in assets, has emphasized the significance of artificial intelligence (AI) in its mid-year outlook report.
The company sees AI as a “mega force” that could generate substantial returns for investors, particularly in today’s “unusual” market conditions.
BlackRock’s report highlights the increasing concentration of gains in the S&P 500, with only a few tech stocks driving the index.
The firm believes that investing in AI presents an opportunity to capitalize on this concentration. Despite challenging macroeconomic conditions, BlackRock’s investment team views AI as a major driver of returns.
The report identifies automation as the most apparent benefit of AI. While acknowledging the increased risk of automation for white-collar jobs, BlackRock suggests that the resulting cost savings could significantly enhance profit margins, especially for companies with high staffing costs and tasks that are easily automated.
Additionally, the firm recognizes the potential of AI-powered tools in leveraging proprietary data to create innovative models.
BlackRock also points out several key drivers of growth in the coming decade, including the global shift towards low-carbon economies, aging populations, and the rapidly evolving financial system.
The firm’s perspective on AI aligns with other voices in the investment industry. Matt Huang, CEO of Paradigm, a crypto investment firm, emphasized the compelling developments in the AI field and their significance.
However, not all commentators share the same bullish outlook on AI investments. Macro-finance commentator Financelot highlights that the recent AI boom, exemplified by the soaring shares of GPU manufacturer Nvidia, is largely driven by demand for AI-focused computing chips. He suggests that potential U.S. export restrictions on these chips could negatively impact the share prices of AI-related companies.
While BlackRock has shown enthusiasm for AI, recent developments have also seen the company turning its attention to Bitcoin.
The firm has submitted an application to the Securities and Exchange Commission for a spot Bitcoin Exchange Traded Fund (ETF), aiming to be the first to receive regulatory approval for such a product. Bloomberg analysts estimate BlackRock’s chances of approval at 50%.
In summary, BlackRock identifies AI as a powerful force that can drive significant returns for investors.
The firm sees automation, data leverage, and several macroeconomic trends as key factors contributing to AI’s growth potential.
However, there are differing opinions regarding the long-term sustainability of the AI boom, with concerns over the dependence on AI-focused computing chips.
BlackRock’s recent interest in Bitcoin further demonstrates its adaptability to emerging investment opportunities.
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According to Michael Shaulov, CEO and co-founder of Fireblocks, an approved BlackRock spot Bitcoin exchange-traded fund (ETF) will bring in new institutional money to Bitcoin, but it will be the retail investors who will ultimately drive significant price surges.
Shaulov made these observations during the Australian Blockchain Week, highlighting that institutional involvement in crypto may not necessarily lead to skyrocketing prices.
Shaulov pointed out that even during the mid-2020 period when there were massive inflows of institutional money, the prices didn’t see significant appreciation until retail investors fervently embraced crypto assets later in the year.
The institutions were acquiring Bitcoin slowly and utilizing algorithms that wouldn’t drive up the market.
On the other hand, retail investors, who participate in a less sophisticated manner, were responsible for dramatic price movements, with 50% increases attributed to them.
However, Shaulov acknowledged that the finite supply of Bitcoin meant that any large-scale accumulation of the cryptocurrency would ultimately impact its price.
He believed it would be easier for institutions currently not participating in the market to add Bitcoin to their allocation due to its unique properties.
Shaulov also discussed the various narratives surrounding Bitcoin among institutional investors.
He mentioned that the narrative surrounding Bitcoin is still unfolding for these institutions. Is it a hedge against inflation? Is it a public reserve currency? Is it a hedge against government financial misdealings? Shaulov personally views Bitcoin as the “ultimate insurance asset.”
He emphasized that Bitcoin possesses properties that make it valuable in times of crisis.
It is disconnected from governments, digitally native, and easily transferable.
Shaulov concluded by stating that the specific value of Bitcoin at any given point, whether it’s $15,000, $20,000, or $60,000, is not as crucial as having enough of it to survive challenging periods.
In his opinion, Bitcoin serves as a reliable asset in times of uncertainty and can provide a safeguard against adverse economic conditions.
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