SEC Raises Concerns Over Coinbases Role in Celsius Bankruptcy Plan

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Coinbase Global executives for months have said they are seeking to diversify so they can make money no matter what happens in crypto trading. This development adds another layer of complexity to Celsius’ efforts to restructure and distribute approximately $2 billion worth of bitcoin and ether to its customers, according to the report. The global economy may not be ready to face the worst-case scenario of https://xcritical.online/ the U.S. interest rate rising as high as 7% with stagflation, according to the CEO of investment banking giant JPMorgan (JPM), Jamie Dimon, Bloomberg reported on Tuesday. Since March 2022, the Federal Reserve has raised the benchmark borrowing cost by 525 basis points to the 5.25%-5.5% range to tame inflation. The so-called tightening cycle was partially responsible for last year’s crypto market crash.

Coinbase Wants to Diversify Revenues. For Now, It’s Still All About Bitcoin.

The SEC’s concerns primarily revolve around Coinbase’s role in distributing Celsius’s assets to international customers, according to the report. The SEC argues that the agreements between Celsius and Coinbase extend beyond the services of a distribution agent and involve brokerage and master trading services. These services, according to the SEC, raise similar concerns to those outlined in its lawsuit against Coinbase earlier this year. Celsius, a crypto lender, filed for bankruptcy protection in July 2022 and is now working towards a fresh start as a user-owned company, the report said. The company aims to distribute its assets under the management of investment firm Arrington Capital, which is part of a consortium that won Celsius’ assets at a bankruptcy auction earlier this year.

• Sam Bankman-Fried, the founder of collapsed cryptocurrency exchange FTX, has renewed a request for temporary release from jail during the course of his trial, according to a letter from his lawyers to the judge overseeing the case filed late Monday.
• These services, according to the SEC, raise similar concerns to those outlined in its lawsuit against Coinbase earlier this year.
• The SEC argues that the agreements between Celsius and Coinbase extend beyond the services of a distribution agent and involve brokerage and master trading services.

Crypto exchange Coinbase (COIN) has registered with Spain’s central bank to provide exchange and custody services, the company announced Monday. Registration with the Bank of Spain is a mandatory step toward offering crypto-related services, and registered firms have to comply with the xcritical reviews country’s anti-money laundering standards. While the country does not yet have a licensing regime for crypto firms, Spain will be required to implement one under the European Union’s recently finalized MiCA regulation for crypto issuers and service providers set to take effect in 2024.

The latest price moves in crypto markets in context for Sept. 26, 2023.

According to Dimon, the Fed may have to keep raising rates to subdue persistent inflation and impending increases will likely be more damaging to the global economy. Sam Bankman-Fried, the founder of collapsed cryptocurrency exchange FTX, has renewed a request for temporary release from jail during the course of his trial, according to a letter from his lawyers to the judge overseeing the case filed late Monday. The request saga started in August, when his release on bond was revoked and he was locked up after a judge ruled he’d probably tried to tamper with witnesses. On Sept. 12, Bankman-Fried’s request to overturn that decision was denied. However, the SEC, along with the Justice Department’s bankruptcy watchdog and some Celsius customers, has raised objections to certain aspects of Celsius’s Chapter 11 plan, per the report. The Securities and Exchange Commission  (SEC) has reportedly expressed reservations regarding Coinbase Global’s proposed involvement in Celsius Network’s plan to emerge from bankruptcy.