Celsius has submitted a motion requesting that a portion of the total $225 million that is being detained in the "Custody Program and Withhold Accounts" be returned to the owners for $50 million.
The financially troubled cryptocurrency lender Celsius Network has only yesterday submitted a move to the United States Bankruptcy Court requesting permission to enable consumers to withdraw digital assets that are currently stored in specific accounts. However, there is a catch: the motion will only apply to Custody and Withold Accounts, and only for assets that are being held in custody that are valued at $7,575 or less.
The motion that will be applied
Custody and Withhold Accounts, which operate as storage wallets, have been designed by Celsius in such a manner that users are still able to legally claim ownership of bitcoin stored in such accounts. This ownership does not, however, extend to assets that are stored in accounts that provide yearly crypto earnings or lending services (Earn and Borrow accounts).
A variety of reactions have been received from members of the community in response to the motion. Some creditors are pleased that Celsius Network has acknowledged that the monies held in its "Custody Program and Withhold Accounts likely do represent the property of their estates."
However, according to a tweet that was posted by the CEO of BnkToTheFuture.com, Simon Dixon, the community feels that the amount Celsius intends to release is a far smaller amount than what is fair.
Why is the motion being set?
As Dixon points out, just $50 million of the $210 million held by 58,300 customers in custody accounts is due to be released. Furthermore, the released sum will not include any monies beyond $7,575 that were moved from the Earn Program and the Borrow Program into Custody and Withhold accounts.
Celsius is unable to avoid transferring sums to creditors that are less than the "statutory cap" of $7,575, as specified under section 547(c)(9) of the Bankruptcy Code. This provision means that Celsius must comply with requests from creditors to transfer amounts that are less than $7,575.
In addition, the statement states that as of Monday, about 5,000 clients retained a total of $15.33 million in their Withhold Accounts.
The attorneys for Celsius have made a distinction between "Pure Custody/Withhold Assets" and "Transferred Custody/Withhold Assets" in order to arrive at the $50 million figure. "Pure" assets are assets that have not been transferred from the Earn or Borrow Programs, and "Transferred" assets are assets that have been transferred. The distribution of this cash has not been warmly accepted by the residents of the community.
In reaction to a tweet that Celsius sent on Friday on Twitter, a large number of members of the community have made it clear that they demand nothing less than the return of all of their monies. According to Celsius, assets that are secured under the Earn and Borrow Programs are most likely part of their estates. Transferring these assets to Custody or Withholding accounts is referred to as "a transfer of the Debtors' property to customers," and Celsius maintains that this is the case.
Final Thoughts
The motion was filed just one day after an ad hoc group of sixty-four holders of custodial accounts filed a complaint alleging that the terms of use for the accounts state that title to custody assets "always remains with the user."
The group is attempting to recover assets valued at more than twenty-two and a half million dollars. The motion is going to be heard on October 6, and in the meanwhile, users' assets have been kept hostage on the platform for more than two months. The hearing is slated to take place on October 6.
Recently, Ethereum announced that the Bellatrix update was fixed on September 6 in the morning. Bellatrix is the top critical update on the Ethereum merge between two others. The second critical update is the Paris upgrade. That will switch the network into the proof-of-stake (PoS) consensus mechanism from proof-of-work (PoW).
Ethereum’s merger and transition to PoS from PoW is perhaps the most awaited event in the crypto market. Initially, the much-anticipated transition offers Ethereum users a lot to celebrate. Also, it might lead some individuals vulnerable to hacks, attacks, and penalties. In this article, we are going to disclose some tips that will help you to be ready for the upcoming merge.
What Is The Ethereum Merge?
The Merge is the switching of the Ethereum (ETH) blockchain to the Proof-of-Stake (PoS) consensus mechanism from proof-of-work (PoW). PoS is less energy-consuming. According to the Ethereum Foundation, That Merge will instantly cut 99 percent of Ethereum’s carbon emissions.
This will make ETH a powerful candidate for institutional investors like Tesla. That has stayed away from Bitcoin (BTC) concerning its energy use. It will also affect the tokenomics of ETH.
Over time, ETH’s supply will remain stable or can be decreased. All retail investors will also stake their ETH for passive rewards once the Merge will be succeeded.
Users Do Not Need To Do Anything During The Transition :
The official Ethereum blog post stated that the users, who hold ETH on an exchange or in a self-custodial wallet aren't required to do anything to be ready for The Merge.
The top crypto exchanges in the market, like Binance and Coinbase, will ensure their user community keeps safe their funds in their wallets during the upgrade. If any application, exchange, or wallet provides extra instructions, users should ensure these instructions if it comes from verified sources or not.
Also, it is asked not to panic if any user finds their ETH frozen for a few hours before and after the merge. This is the result as most leading exchanges will go through a temporary pause on ETH borrowing, deposits, and withdrawals.
Things To Be Considered In Case Of A Hard Fork :
There are several speculations of a potential hard fork after the Ethereum Beacon merge. The transition to PoS from PoW will throw miners out of a revenue stream and make their computing equipment systems useless.
Since that type, several powerful mining entities have suggested continuing the proof-of-work network post the transition to PoS, causing a fork in the blockchain.
If this occurs, it will result in the development of power. As the possibilities of a hard fork are less, they cannot be abandoned. But if it occurs, scammers and hackers will use it as an opportunity to fraud investors through safe strategies.
Scammers may lure ETH holders to buy PoWETH or transfer funds to an unknown or random wallet. They may show it as the completion of the upgrade. After receiving the amount, bad actors will disappear. In the case of a hard fork, most platforms will use snapshots of user holdings to distribute an equal amount of power. They may also offer official instructions. Also, an unofficial fork may take place.
Guidelines For Nodes :
Nodes will have to implement an execution layer in addition to their consensus layer clients After the merge. Ethereum has followed this multilayer setup for safety reasons. Unsuccessful activities to abide by the new rules and guidelines could result in higher penalties. Announcing the Bellatrix upgrade, Ethereum’s blog post has stated the client releases that will support The Merge on the Ethereum mainnet. The blog post also added additional resources on why the multilayer setup was taken and a guide for switching clients of the network.
The Crypto market is an all-time volatile virtual space. For its random volatility, users face hurdles for long-term investment or trading. Users now need its best features along with stable rates. The term stablecoins create a bridge between the crypto and fiat world as their value is connected or pegged to more stable reference assets like other currencies or digital commodities.
Stablecoins are developed to reduce or balance the volatility of crypto. It acts as the store of value and digital money to facilitate day-to-day trade or exchanges.
One of the first successful stablecoins, Tether was launched in 2014. The idea of stablecoins came into global traction. The popularity of stablecoins increased remarkably over the years.
It is expected that hot wallets are linked to the internet. Wallets are the element of cryptocurrency exchanges.
The Treasury Department imposed sanctions on Tornado Cash last month due to the allegations of laundering more than $7 billion worth of virtual assets.
The Raising Moment :
In the year 2022, in the first quarter of the year, stablecoins got a 15% increase in the market. But on the other side, Terra Luna fell painfully at the same time. Overall, the crash of Terra Luna caused the loss of billions in the market. Then it raised questions about the stability of stablecoins. The market became conscious of its upcoming years. It helped in cutting out the existing bad actors in the crypto market and it educates the investors gradually.
It raised the shortcomings of algorithmic stablecoins along with awareness among investors and traders about the fundamentals of stablecoins. Additionally, algorithmic stablecoins are not backed by any authority component. The coins maintain their value pegged to fiat through complex algorithms.
Though, the coins are not stable logically. Because their price is counted by the supply and demand of investors. However, all other collateralized stablecoins like fiat-collateralized (Tether- USDT), Commodity- collateralized (Tether Gold- XAUT), and crypto-collateralized (Makers DAO’s Dai- DAI) stablecoins are more stable and safe for crypto investment options. Because they are always backed with stable reference digital assets. They also focus on regular audits ensuring that their reserves are balanced with the stablecoin circulation.
Stablecoins managed to retain the faith of investors and it succeeded to survive the crash due to its strong fundamentals. The stablecoins are not only just investment instruments, it is more than that.
Expectations From The Stable Coins :
These pegged coins have the potential to bring revolution to the finance industry by facilitating cross-border payments. The traditional process takes a few days to conduct the wire transfer. They also charge a heavy transaction fee on international transactions. But in the case of stablecoins, it can make these payments quickly in an affordable manner for users by reducing the transaction time and fee significantly.
Due to its huge potential, several governments worldwide are trying to explore ways of integrating and regulating stablecoins. Meanwhile, Japan has recently launched a stablecoin bill for investor protection. Additionally, there are ongoing discussions in regulatory bodies to bring an effective regulatory framework for stablecoins in the EU. It is the same scenario in countries like the UK and the US etc.
Present Scenario :
Nowadays stablecoins are becoming a major part of the crypto ecosystem. They are rapidly increasing their existence in the market. Though, other competitors are entering the stablecoin space.
Recently Tether announced to launch of a new stablecoin named GBPT, which is pegged to the British pound. Alongside, Shytoshi Kusama announced that the Shiba Inu family is also planning to bring their stablecoin. The future of stablecoins is expected to be very promising. But it depends on the factors like regulatory policies and legal acceptance globally.
The crypto world is volatile along with unexpected changes. Since the last period of 2021, the whole market is under several issues. The crypto market has been volatile after the last high market cap of $3 trillion. Top cryptocurrencies had lost their value. Now another issue has arisen. Once again a lawsuit hit the crypto industry. A single crypto platform is in a troublesome situation. Primarily, it was in the spotlight that Stake.com , the former partner of one of the biggest Bitcoin casinos in the world, was suing the founders of the platform.
What Is The Matter?
Recently, it was reported that the former partner Christopher Freeman lodged a civil lawsuit in the Southern District of New York. According to the filing, he claimed $400 million as punitive damages claiming that he was deceived into straying away from the formulation of Stake.com.
The creators of Stake.com, Ed Craven and Bijan Tehrani have been living luxurious lives. The recent investigation says that their recently bought costly houses were being held against them. He also stated that the firm had processed nearly $100 billion in bets. Freeman utilized all the money to take the success of the Bitcoin casino into the spotlight.
A Short Background :
The existing data shows that Tehrani and Freeman, both passed out from the same primary and high school. They met at Craven University in 2013. At that time the duo decided to set up a casino business called Primedice. Freeman partnered with 20 percent in Primedice. On the other side, Tehrani and Craven held 40 percent. This was a sample of their initial investment.
Though, Freeman’s stake dropped to 14 percent within nine months. This was a kind of result of rewarding other members of the development team. After that, Freeman implemented the idea of a crypto casino in 2016. Freeman claimed that the other two candidates were not interested because of the scare around regulations.
As a reentry, both have decided to go ahead with Stake.com while Freeman stated to be left high and dry. Tehrani and Craven invited Freeman to move to Australia if he wants to be a part of the crypto casino.
According to Freeman’s court, when Stake.com came up as a virtual casino including a competing online dice game and many other features Freeman had proposed. Tehrani and Craven affirmatively tried to deplete Freeman’s concern at having been misled by supporting that he still retained his stake in Primedice. Additionally, Freeman alleged that he was l
blocked out of Primedice also.
The Court's Proceedings :
Crypto casino Stake.com considers Freeman’s claims “inconsistent” and “misleading”.
The founders of Stake.com strictly rejected Freeman’s claims, considering them false. The firm also stated that the lawsuit was intended to spread incorrect information.
According to the statement, the complaint, that was filed by Chris Freeman, fills allegations that are internally inconsistent, intentionally misleading, and false with proof.
The firm logically showed that it would stand its ground and not give into Freeman’s demands. Bitcoin casino founders were confident about the court dismissing Freeman’s demands shortly.
The betting company is trusted to be an off-shore one. It was started in Melbourne, Australia, in 2017.
The company hired Canadian pop star Drake as an ambassador. The company is the lead jersey sponsor of the English Premier League, that is, the soccer team. Stake.com is allotted to be worth up to $1 billion. The founders of Stake.com stated that the company did not intend to compensate Freeman with $400 million. They claim Freeman’s lawsuit was a “desperate attempt” to spread FUD over the company and the court would dismiss it.
Robinhood is an investing platform that enables customers to engage in trading without paying any commissions while doing it on the go from the convenience of their mobile devices. Even though their primary emphasis is on facilitating investments for their users in the conventional stock market, Robinhood included a cryptocurrency trading area on their website in 2017, at the height of the enormous bubble in the value of crypto assets.
This platform still has a long way to go before it can become a true bitcoin bank since users are not yet able to withdraw their cryptocurrency holdings to their wallets where they own the private keys. Although the integration of cryptocurrencies into Robinhood may be appealing for people who prefer to monitor all of their digital assets inside one app, this platform still has a long way to go before it can become a real cryptocurrency bank.
What is Cardano in the world of crypto?
Cardano is a distributed ledger platform that is open to the public. It is decentralized and open-source, with proof of stake serving as the mechanism for reaching consensus. It uses its internal coin, which it refers to as ADA, to make peer-to-peer transactions possible. Charles Hoskinson, who was also one of the founders of Ethereum, launched Cardano in 2015.
The cryptocurrency used on the Cardano platform is referred to as ADA. Ada Lovelace, a mathematician who lived in the 19th century and is widely regarded as the first computer programmer, was honored with the naming of Cardano's coin. People pay the transaction costs associated with utilizing the site by making use of ADA tokens.
Robinhood to include Cardano in its list
According to a tweet published by the firm, the cryptocurrency Cardano ADA has been included as an official trading option on the Robinhood platform. The online brokerage form has just lately begun to add other cryptocurrencies to its trading platform, and ADA is the most recent addition to the list.
The listing comes just in time for the imminent Cardano Vasil Upgrade, which is anticipated to be live within the next month. The continuous controversy and instability of the cryptocurrency market have caused Robinhood to proceed with new cryptocurrency additions very carefully over the last several months.
The following currencies were introduced to the trading platform on Wednesday, making them among the newest additions to the listings:
Shiba Inu (SHIB)
Solana
Polygon
Compound
With the inclusion of Cardano on its platform, it would seem that Robinhood has left the door open for more cryptocurrencies to be included shortly. Some people believe that since the program hasn't introduced any new cryptocurrencies in quite some time, the developers may soon begin adding even more new cryptocurrencies.
These are referred to as Polkadot, Cardano, Terra, and Avalanche, amongst other cryptocurrencies. As a result of the present bear market, which is being triggered by several issues, including a lawsuit filed by Celsius Network and concerns that Coinbase may declare bankruptcy, Robinhood is likely to be wary about adding new currencies right now. Nevertheless, the most recent batch of updates offers dealers of cryptocurrencies and users of Robinhood a reason to be optimistic.
Is purchasing Ada a wise financial move?
Cardano (ADA) is a cryptocurrency that has a value of around $0.55 per coin at the moment. In the summer of 2018, its price reached an all-time high of $3.10. As of August 2022, the coin's total market capitalization is around $18.8 billion. Despite the sharp drop in value, which is typical for most cryptocurrencies as of late, growth may still be possible as a consequence of advancements made on the platform.
In the last year, Cardano has established itself as one of the digital assets that are the most active and busiest in the cryptocurrency market. Keeping all of this in mind, it is prudent to state that ADA is one investment opportunity that should be taken into consideration. Many industry professionals believe that Cardano will have a prosperous future in 2022.
