Mooners and Shakers: Bitcoin Stable as US Court Makes Tough Ruling for Celsius Users; DCG concerns escalate

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Bitcoin and other crypto majors are holding fairly steady as we head towards the end of the first week of 2023 for crypto. Meanwhile, Celsius users have received a shock, and fears of crypto-contagion fallout continue to surround Digital Currency Group (DCG).

Let’s talk about Celsius first.

Judge rules $4 billion in assets will remain at Celsius

Users of the once popular and now bankrupt cryptocurrency lending platform Celsius have received some unsettling news of a serious wig-wearing guy in the United States.

According to a report by The Defiant, US Chief Bankruptcy Judge Martin Glenn has ruled that more than US$4 billion in crypto deposited in the platform’s Earn accounts does not actually belong to the approximately 600,000 customers who made the deposits.

Celsius halted withdrawals from its crypto yield-generating platform in June last year, citing “extreme market conditions” and filed for Chapter 11 bankruptcy in July.

The decision stipulates that the assets belong instead to the estate of Celsius. And that’s because, Judge Glenn reasoned, Celsius’s terms of service state that the company owns all right and title to those qualifying digital assets, including ownership rights.

What most people don’t know is that traditional banks are exactly the same. When you deposit money you are legally lending that money to said bank and if shit hits the fan that money is technically not yours

— JPK (@moccaobe) January 5, 2023

If the cryptocurrency assets in the Earn Accounts belong to [Celsius]the account holders are unsecured creditors, and their collection depends on distributions to unsecured creditors under a confirmed Chapter 11 plan, or under the bankruptcy codes’ priority rules in the event of liquidation, Glenn wrote. in the decision.

A fundamental principle of the Bankruptcy Code is equality of distribution. There simply won’t be enough value available to fully reimburse all account holders, Glenn added.

It really is a cruel world.

New York AG sues former Celsius CEO Alex Mashinsky

But wait a second, maybe all is not lost for all Celsius Earn users. New York Attorney General Letitia James is on the ill-fated investors case, after filing a lawsuit against Alex Mashinsky, co-founder and former CEO of Celsius Network.

James noted that she “is suing to get New Yorkers their money back and ban Mashinsky from doing business in New York.”

For all other global Celsius users who have their funds in limbo, let’s hope any success the GA achieves extends beyond New York State.

I’m suing the former CEO of cryptocurrency platform @CelsiusNetwork for defrauding investors of billions of dollars.

Alex Mashinsky lied to people about the risks of investing in Celsius, hid his deteriorating financial situation, and failed to register in New York.

— NY AG James (@NewYorkStateAG) January 5, 2023

I’m suing to get New Yorkers’ money back and ban Mashinsky from doing business in New York.

We will continue to protect people from the risks of investing in cryptocurrency.

— NY AG James (@NewYorkStateAG) January 5, 2023

Overview of the top 10

With the overall crypto market capitalization at US$852 billion, as stable as the Nullabor as of this time yesterday, here is the current state of affairs among the top 10 tokens according to CoinGecko.

Not much to report from the crypto majors as of this time yesterday, so let’s check with some prominent Twitter-based chart watchers and see what they have to say.

We feature Dutch trader and analyst Michal van de Poppe, who is reasonably positive for a relief rally while highlighting the potential risk of crypto-contagion surrounding Grayscale/DCG/Genesis:

We should be good if #Bitcoin stays above $16.6,000.

Tricky weekend ahead with Grayscale, tomorrow unemployment data and others.

I wouldn’t go crazy on leverage.

— Michal van de Poppe (@CryptoMichNL) January 5, 2023

Meanwhile, are the bears starting to pivot? Not necessarily, but US trader “Roman Trading”, for example, who was rather bearish on Bitcoin’s price action for the vast majority of 2022, had this to say:

Everyone on my Twitter feed is saying $BTC to go down.

I’m not saying the bottom is in, but flocking in front of the herd worked well for me.

Bearish setup on $USDT.D for confluence with $BTC DB on 1D.

Send crypto higher.#bitcoin #cryptocurrency #cryptotrading #cryptonews

— Roman (@Roman_Trading) January 5, 2023

Then there is Australian-born New Yorker Bob Loukas, a trader with over 25 years of experience and an OG who invests in Bitcoin. He also appears to be seeing a potentially large relief rally on the charts.

I try to stay away from these types of tweets because people take them as absolutes and then trade them that way. And not to mention, we don’t know “exactly” when the cycle starts or just before.

Mentioning b/c is a strong signal in my study.

— Bob Loukas (@BobLoukas) January 5, 2023

Tops and bottoms: 11100

Scanning a market cap range of around US$6.6 billion to around US$289 million across the rest of the top 100, finds some of the biggest 24-hour winners and losers as of press time. (Stats accurate at time of publication, based on data from CoinGecko.com.)

DAILY PUMPS

Chiliz (CHZ), (market cap: $598 million) +7%

eCash (XEC), (mc: 480 million USD) +6%

BitDAO(BIT), (mc: USD 453 million) +5%

Monero (XMR), (mc: USD 2.8 billion) +3%

Axie Infinity (AXS), (mc: US$780m) +2%

ARE WE DAILY

Huobi (HT), (market cap: $751 million) -11%

Ethereum Classic (ETC), (market cap: $2.5 billion) -5%

Casper Network (CSPR), (mc: $304m) -5%

NEXO (NEXO), (mc: $396 million) -4%

Arweave (AR), (mc: $333m) -4%

BREAKING: Huobi shut down internal employee communication groups and feedback channels.

What’s going on at @HuobiGlobal

— Garlam (@GarlamWON) January 5, 2023

around the blocks

A certain relevance and randomness that marked us on our morning trips through the Crypto Twitterverse

That doesn’t sound good when it comes to DCG, the world’s largest digital asset manager. Maybe we need to hurry and crash so we can finally start to cross the other side of the ongoing crypto contagion linked to Terra and FTX.

Scoop: Genesis parent company Digital Currency Group just shut down its $3.5 billion wealth management division as the crypto contagion continues. https://t.co/lI7TdnWdsg

— Kate Clark (@KateClarkTweets) January 5, 2023

Still, this may be slightly better news. Depending on how you feel about BlackRock, of course.

Breakup!

BlackRock adds #Bitcoin to its list of assets for its Global Allocation Fund.

It’s far from dead.

— Michal van de Poppe (@CryptoMichNL) January 5, 2023

Every time you think you’re having a bad day, think back to that poor lady. https://t.co/PufD1AuF7U

— David “JoelKatz” Schwartz (@JoelKatz) January 5, 2023

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