{"id":497844,"date":"2022-10-03T05:37:52","date_gmt":"2022-10-03T02:37:52","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/doj-objects-to-celsius-plans-to-reopen-withdrawals-and-sell-stablecoins\/"},"modified":"2022-10-03T05:37:52","modified_gmt":"2022-10-03T02:37:52","slug":"doj-objects-to-celsius-plans-to-reopen-withdrawals-and-sell-stablecoins","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/doj-objects-to-celsius-plans-to-reopen-withdrawals-and-sell-stablecoins\/","title":{"rendered":"# DOJ objects to Celsius plans to reopen withdrawals and sell stablecoins"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a28ce80e4ffd\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a28ce80e4ffd\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/doj-objects-to-celsius-plans-to-reopen-withdrawals-and-sell-stablecoins\/#%E2%80%9D_DOJ_objects_to_Celsius_plans_to_reopen_withdrawals_and_sell_stablecoins_%E2%80%9C\" >&#8221; DOJ objects to Celsius plans to reopen withdrawals and sell stablecoins  &#8220;<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/doj-objects-to-celsius-plans-to-reopen-withdrawals-and-sell-stablecoins\/#Independent_examiner_appointed\" >Independent examiner appointed<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_DOJ_objects_to_Celsius_plans_to_reopen_withdrawals_and_sell_stablecoins_%E2%80%9C\"><\/span>&#8221; DOJ objects to Celsius plans to reopen withdrawals and sell stablecoins  &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTAvYWEwM2RjNDgtYTc1YS00YTgwLTkyOWYtNDI1YzMzYjM5NzhjLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-6ebd806f>The Department of Justice (DOJ) has submitted an objection to Celsius\u2019 motion to reopen withdrawals for select customers and sell its stablecoin holdings.<\/p>\n<p>The DOJ is asserting that the state of Celsius\u2019 financials are lacking transparency, and that key decisions like this should not be considered until the independent examiner report has been filed. <\/p>\n<p>The move by the DOJ adds to the objections filed last week by the Texas State Securities Board, the Texas Department of Banking, and the Vermont Department of Financial Regulation. All three are opposed to Celsius selling its stablecoin holdings, asserting there\u2019s a risk the firm could use the capital to resume operating in violation of state laws. <\/p>\n<p>In a Sept. 30 filing with the Bankruptcy Court for the Southern District of New York, a U.S. Trustee for the DOJ, William Harrington outlined an objection to Celsius opening up withdrawals to its &#8220;custody&#8221; and &#8220;withhold&#8221; customers, citing a lack of transparency over the firm\u2019s financials. <\/p>\n<p>Harrington argues in the filing that such withdrawals should not be opened up until the independent examiner report on Celsius business operations has been completed. <\/p>\n<blockquote><p>\u201cThe Motions are premature and should be denied until after the Examiner Report is filed. First, the Withdrawal Motion seeks to impulsively distribute funds to one group of creditors in advance of a fulsome understanding of the Debtors\u2019 cryptocurrency holdings.\u201d<\/p><\/blockquote>\n<p>The DOJ has also opposed a potential stablecoin sell off, highlighting similar concerns held by Texas and Vermont regulators that Celsius\u2019 motion doesn\u2019t concretely outline \u201cwhat impact such a distribution or sale would have\u201d on the business moving forward. <\/p>\n<p>\u201cSecond, the Stablecoin Motion seeks to liquidate stablecoins held by the Debtors without providing information regarding ownership, segregation, or the impact of such sale on later distributions to creditors who may have stablecoins on deposit with the Debtors,\u201d the filing reads.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Independent_examiner_appointed\"><\/span>Independent examiner appointed<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>According to Harrington, the \u201cUnited States Trustee <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ointed Shoba Pillay\u201d the examiner on Sept. 29, with the New York Bankruptcy court approving the appointment on the same day. <\/p>\n<p>Pillay will have roughly two months to prepare and file an examiner\u2019s report on Celsius, hopefully providing a clear breakdown of its assets and liabilities. <\/p>\n<p>Harrington essentially asserted that Celsius\u2019 motions should not even be considered until well after the examiner report has been filed, noting that \u201cany distribution or sale should be deferred until interested parties, the United States Trustee, and the Court are able to make a determination\u201d on the value of Celsius liabilities, claims against it, its assets and what \u201cthe debtors intends to actually pay its creditors.\u201d<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Crypto Biz: The Voyager Digital auction is over \u2014 What now?<\/em><\/strong><\/p>\n<p>Simon Dixon, the founder of crypto investment platform BnkToTheFuture \u2014 which was the lead investor in Celsius \u2014 predicted via <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> on Oct. 1 that Celsius will look to repay its creditors in Celsius (CEL) tokens as part of a reorganization plan that ultimately \u201cwon\u2019t get past regulators &amp; regulators will file motions to reject\u201d it. <\/p>\n<p>If such occurs, Dixon sees it sparking a bidding war for Celsius assets, similar to that of Voyager Digital\u2019s recent $1.3 billion asset auction that was won by FTX US.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">3\/9) This will drive the vultures into a bidding process where the vultures will try &amp; buy the assets we paid for without our consent &amp; FTX &amp; TradFi will give us pennies on the dollar.  It will be a lot worse for creditors than <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/investvoyager?ref_src=twsrc%5Etfw\">@investvoyager<\/a> due to size of hole. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/4EqspGx9iF\">pic.twitter.com\/4EqspGx9iF<\/a><\/p>\n<p>\u2014 Simon Dixon (Beware Impersonators) (@SimonDixonTwitt) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/SimonDixonTwitt\/status\/1576112220626640896?ref_src=twsrc%5Etfw\">October 1, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/doj-objects-to-celsius-plans-to-reopen-withdrawals-and-sell-stablecoins\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; DOJ objects to Celsius plans to reopen withdrawals and sell stablecoins &#8220; The Department of Justice (DOJ) has submitted an objection to Celsius\u2019 motion to reopen withdrawals for select customers and sell its stablecoin holdings. The DOJ is asserting that the state of Celsius\u2019 financials are lacking transparency, and that key decisions like this&#8230;<\/p>\n","protected":false},"author":1,"featured_media":497845,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTAvYWEwM2RjNDgtYTc1YS00YTgwLTkyOWYtNDI1YzMzYjM5NzhjLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[4978,117,71391,3885,70934],"class_list":["post-497844","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bankruptcy","tag-business","tag-department-of-justice","tag-new-york","tag-regulation"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/497844","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=497844"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/497844\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/497845"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=497844"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=497844"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=497844"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}