The Court has stayed the CFTC action against Celsius Network and Alexander Mashinsky due to a motion to intervene by the US Government.
The CFTC complaint charges the defendants with fraud and material misrepresentations in connection with the operation of its digital asset-based finance platform.
The Federal Trade Commission announced a settlement with bankrupt cryptocurrency platform Celsius Network.
Alex Mashinsky allegedly lied to investors, concealed Celsius’s dire financial condition, and failed to register as required by State Law.
Galaxy was selected as the winning bidder for the GK8 platform as a part of the process of selling Celsius Network assets.
The Trustee argues that bidding procedures should not be approved until it is known what specific Celsius assets are to be sold.
The US Trustee opposes Celsius’ plans to reopen withdrawals for certain customers and to sell stablecoin.
The Texas State Securities Board and the Texas Department of Banking object to Celsius’ motion to permit the sale of stablecoin.
Celsius appoints Chris Ferraro as Chief Restructuring Officer and Interim Chief Executive Officer as Alex Mashinsky steps down.
The Court has directed the United States Trustee to appoint an examiner in the Celsius chapter 11 cases.