Celsius First Bankruptcy Hearing Reveals Desperate Recovery Plan
Celsius lawyers defends its controversial decision to halt withdrawals as part of their recovery plan, offering creditors a choice between taking less than what they are owed in cash or making a bet on the long-term value of cryptocurrency, HODL and ride out the crypto winter. According to a tweet from Financial Times reporter Kadhim Shubber, Celsius’ lead attorney Pat Nash reassures Celsius users that this will not be a liquidation and that “Celsius does not intend to force customers to take their recovery in fiat.”
Celsius also claimed that they can sell BTC that it mines through its already-indebted subsidiary mining operation to pay off over $5 billion debt to half a million creditors.
Elon Musk Files Countersuit against Twitter to Terminate $44 Billion Deal
Elon Musk is planning to file a counter-lawsuit against Twitter in an attempt to end the $44 billion agreement in which Musk would buy the social media giant. Twitter demanded the Delaware Court of Chancery to force Musk to pay up for the agreed-upon price of $54.20 per share through their suit, while Musk has argued that his termination request is legally actionable due to Twitter’s failure to provide accurate information regarding fake accounts and bots on the platform.
The first hearing is scheduled for Tuesday. According to the New York Post, Delaware Court of Chancery chancellor Kathaleen McCormick is expected to settle a request from Twitter for a potentially accelerated four-day trial starting in September, while Musk is pushing for a later court date in February 2023 as his legal team needs more time to gather information about Twitter’s bot population.
Coinbase Shuts Down Affiliate Program, Insolvency FUD Grows
Coinbase announced the temporary closure of its affiliate marketing program in the U.S. with an effective date of Tuesday, July 19. Crypto influencers who are part of the program aimed at acquiring new users will no longer receive commissions. Amidst the market-wide solvency issues including Celsius as well as the termination of Coinbase Pro, this led to rumours that Coinbase might be the next firm facing a liquidity crisis.
However, there are those who claim that these views are just FUD. Crypto YouTuber jungleincxrp tweeted that Coinbase has $6 billion in cash and large crypto serves, but also added that he has moved all his assets from the exchange. Crypto lawyer John Deaton expects that the industry leaders will “NEVER allow a Coinbase bankruptcy” due to the disastrous impact such an event will have on the crypto industry.
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Three Arrows Capital Creditor List Revealed
Court documents from Singapore viewable via the Wayback Machine have revealed the creditor list of Three Arrows Capital (3AC), in debt of a staggering $3.5 billion to 27 different companies, with two-thirds of it belonging to Digital Currency Group, the operator of the brokerage Genesis Global Trading. Some on the creditor list also include other firms who have filed for bankruptcy such as Celsius Network and Voyager Digital. Though the founders of 3AC, Kyle Davies and Su Zhu, have still not been physically located, they attended the online liquidation proceedings via Zoom with their cameras off and microphone muted.
Gemini Carries Out Second Downsizing in Seven Weeks
Gemini has made a second round of lay-offs after cutting 10% of its staff amidst the crypto crash two months ago. According to TechCrunch, although the company had not widely communicated the extent of the layoffs internally, a source close to the company reported that 68 employees were cut, based on the reduction in the platform’s company-wide Slack channel on Monday morning. As it stands, neither of the Winklevoss twins, founders of Gemini, has publicly addressed the second round.