Celsius Network to Issue New Token for Repaying Defrauded Investors
Celsius Network, a leading crypto lending platform, has announced plans to repay creditors by issuing a new token. The move comes as the company proposes to emerge from bankruptcy and become a regulated cryptocurrency exchange.
Their elaborate plan was revealed during a video-court hearing by the company’s attorney Ross M Kwasteniet. According to the lawyer, this would produce more funds for creditors than selling the assets that are difficult to liquidate at the available prices.
The proposal will be first put up to the creditors, including Celsius customers who have cryptocurrency stored on the company’s platform. After that, the US bankruptcy Chief Judge Glenn Martin will consider the voting results to determine whether to accept the proposal or not.
Most of the Celsius customers are happy about the decision as this move is representing the company’s commitment to transparency and fairness. Even though the CEO has been accused of misrepresenting the facts, this move is still an innovative approach to solving Celsius’s current liquidity problem.
The Feds want to regulate the crypto industry now more than ever as many investors are suffering from the fraudulent activities of the system. Overall, the move towards becoming a regulated cryptocurrency platform would be a positive step forward for defamed Celsius, as it would help to strengthen the company’s financial position & ultimately provide greater benefits for its customers. It is likely to be closely watched by other companies in the space.
Celsius & Defamed CEO Alex Mahinsky: What Went Wrong?
Celsius CEO Alex Mashinsky and his team were accused of defrauding investors out of billions of dollars through a series of illegal activities. The company, which proposed to offer a platform for lending and borrowing cryptocurrency, allegedly used funds from new investors to pay returns to earlier investors, in a classic Ponzi scheme.
The legal actions against Mashinsky and Celsius Network are ongoing, but the damage has already been done to the many individuals and institutions that trusted in the company and lost their investments.
This case serves as a reminder of the importance of thorough due diligence and caution when investing in the cryptocurrency market.
Arrest Warrant Issue Against Terraform Co-Founder- Here’s Why
According to Yonhap, a South Korean newswire service, authorities are seeking an arrest warrant for Daniel Shin. According to news reports, the co-founder of Terraform Labs is charged with stealing profits and violating the Electronic Financial Transaction Act.
Terra Co-founders to Face Jail Time?
The co-founder of Terraform Labs is being charged for accumulating illicit profits after selling $105 million of LUNA at a market high without notifying investors. Moreover, he has apparently violated the Electronic Financial Transaction Act for utilizing customer data prior to the massive collapse of the blockchain firm’s cryptocurrencies.
According to the Seoul Southern District Prosecutors Office, warrants were also requested for four Terraform Labs developers who worked on the company’s cryptocurrencies TerraUSD and Luna, as well as three other Terraform Labs investors.
Terraform Labs has been investigated for potential fraud and tax evasion since May, when investors filed complaints against another co-CEO, Do Kwon. Do has been issued an Interpol red notice, but his whereabouts remain unknown.
Prosecutors believe Shin kept Luna, which had been pre-issued without informing regular investors, and pocketed unlawful profits of 140 billion won ($105 million) by selling the tokens at a high price.
Although the Capital Markets Act does not currently have a provision governing stablecoins and bitcoins, prosecutors claimed they consider the Luna cryptocurrency a type of financial investment security.
Shin, though, insists that he is unconnected to Terraform and expressed his profound disappointment at the prosecution for requesting a warrant despite his assistance with the investigation.
In a written statement, he says, “I left (Terraform Labs) two years before the collapse of Terra and Luna and have nothing to do with the collapse.”
Amid All Of This… Where is Do Kwon?
Prosecutors conducted a raid on Daniel Shin’s home in July as part of their investigation into the suspected offenses. Do Kwon is presently in Singapore, along with the other five individuals included in the warrant. Even though the two nations do not have a bilateral extradition treaty, authorities are looking for international assistance in their efforts to extradite Do Kwon.
Did Twitter Solve the Crypto Spam Bots Issue? 
The post Did Twitter Solve the Crypto Spam Bots Issue?  appeared first on Coinpedia Fintech News
Billy Markus has once again taken Twitter to call attention to the issue of crypto bots. This time, he claims that there are fewer spam bots than before and questions whether Twitter has taken any action to address this problem.
For possible reasons, he sarcastically said “I wonder if the cost of mass spamming the same obvious stupid scam exceeded the number of people gullible enough to believe the obvious stupid scam, or if twitter actually did something”
Australia To Issue A Digital Form Of The Australian Dollar
The post Australia To Issue A Digital Form Of The Australian Dollar appeared first on Coinpedia Fintech News
Australia is now among the countries making efforts to issue a digital form of national currency. The central banking institution of Australia, the Reserve Bank, has collaborated with the Digital Finance Cooperative Research Centre (DFCRC) to put forward a technical White Paper on its future CBDC. DFCRC is assisting the Reserve Bank on a research project that assesses all technological, legal, and regulatory considerations related to the CBDC.
As one of their steps, the Reserve Bank has asked industry participants to give their opinion on how the digital dollar would interact with the national monetary network. All along, ordinary participants also have the chance to evaluate the product and test its value proposition. The Bank of International Settlement’s Innovation Hub also formed a part of the project.