SEC Opposes Celsius Network’s Plan to Involve Coinbase in Bankruptcy and Reorganization

On Monday, the United States Securities and Exchange Commission (SEC) voiced its objection to Celsius Network’s proposal involving Coinbase as part of its bankruptcy and reorganization plan. The move came after Celsius Network’s recent announcement of its intention to utilize Coinbase for the distribution of digital assets to its global clientele, seeking approval from the court.

The lawsuit brought to light the Coinbase Prime Broker Agreement, outlining a comprehensive arrangement in which Coinbase would provide brokerage and master trading services to Celsius. However, the SEC raised concerns, asserting that the proposed agreement required further scrutiny.

“The Coinbase Agreements go far beyond the services of a distribution agent, contemplating brokerage services and master trading services that implicate many of the concerns raised in the SEC’s District Court action against Coinbase,” the SEC stated, alluding to allegations against Coinbase for purportedly operating as an unregistered exchange, broker, and clearing agency.

The SEC’s objection filing underscored the potential for additional legal entanglements, given Coinbase’s ongoing legal dispute with the SEC. The Commission reiterated its position that the undisclosed agreement with Coinbase should be presented before the court. Furthermore, they called for the creation of a new agreement to comprehensively divulge the specifics of their collaboration.

Paul Grewal, Coinbase’s chief legal officer, responded to the SEC’s objection, expressing his perplexity regarding the Commission’s stance. He stated, “Coinbase is proud to engage with Celsius to distribute crypto back to its customers. I wonder, why would the SEC object to a trusted US public company taking on this role? We look forward to addressing this with the bankruptcy court and undertaking our important role to make Celsius customers whole.”

As the legal wrangling unfolds, the outcome of this dispute will undoubtedly bear implications for both Celsius Network and Coinbase, as well as the broader cryptocurrency industry. Observers will be closely monitoring developments to ascertain how this potentially precedent-setting case shapes the future landscape of crypto-related partnerships and regulatory oversight.

Related Posts

Leave a Reply

Newsletter

Subscribe To Newsletter

For updates and exclusive offers, enter your e-mail below.

Popular Posts

Winklevoss Twins Inject $4.5 Million Bitcoin Investment into Real Bedford Football Club
April 13, 2024By
Hong Kong Poised to Approve Ethereum and Bitcoin ETFs, Marking Milestone Ahead of Halving
April 13, 2024By
NAICOM & FintechNGR Inaugurates Insurance Policy Project as FintechNGR & Galaxy Backbone Set up Nigerian Domestic Cloud Initiatives
April 10, 2024By

Advertisement

Video Posts

Crypto Stats


CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin67,785 0.78 % 3.30 % 0.03 %
Ethereum3,289.2 0.73 % 5.23 % 1.24 %
Tether1.001 0.04 % 0.15 % 0.01 %
? --- 0.00 % 0.00 %
? --- 0.00 % 0.00 %
? --- 0.00 % 0.00 %
? --- 0.00 % 0.00 %
? --- 0.00 % 0.00 %
? --- 0.00 % 0.00 %
? --- 0.00 % 0.00 %