Lending

Celsius Repays $2.53 Billion to Creditors Amid Bankruptcy Proceedings

Tuesday. August 27 at 7:30 PM

1 min. read

Celsius, the troubled crypto lender, has successfully repaid $2.53 billion to 251,000 creditors, marking 84% of the total $3 billion owed to over 375,000 creditors. This milestone comes as the company navigates bankruptcy since July 2022. The repayment process, benefitting two-thirds of eligible customers, signals positivity in the crypto industry. Similar recovery efforts are seen with Mt. Gox, returning assets after a decade to 127,000 creditors owed $9.4 billion. Despite progress, 121,000 creditors are yet to claim funds, mainly due to small amounts owed. To address this, Celsius implements routine bi-weekly distributions via Coinbase and offers PayPal claim codes for redemption. Legal actions, including settling $4.7 billion in fines and CEO facing fraud charges, add complexity. As Celsius strives to resolve financial turmoil, these actions hint at stability in crypto lending.

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Nexo Resumes User Registrations in the UK After Regulatory Updates

Tuesday. September 3 at 5:30 PM

Nexo has restarted new user sign-ups in the United Kingdom following a 10-month pause in the registration process. The crypto lending platform made significant changes to comply with the UK's Financial Conduct Authority (FCA) regulations. The updated onboarding process focuses on enhancing investor protection and risk awareness, aligning more closely with the FCA guidelines. Nexo temporarily stopped new registrations in the UK to implement these regulatory enhancements. Additionally, the platform adjusted its services in response to FCA changes, such as suspending cashback payouts and referral programs. The 10-month break allowed Nexo to align its procedures with regulatory standards. The new onboarding process includes educational materials to help users navigate the crypto space. Despite challenges faced by other crypto firms in the UK, Nexo aims to provide a smoother experience for investors in the region.

Lending

Unlocking Bitcoin Wealth Through Collateralized Loans

Saturday. August 31 at 5:00 AM

Long-term Bitcoin holders often encounter obstacles when trying to leverage their wealth for financing. Adam Reeds, CEO of Ledn, a Bitcoin lending company, discussed with Cointelegraph how Bitcoin collateralized loans can boost the flow of money and capital. Reeds highlighted that many early Bitcoin adopters prefer not to sell their BTC for liquidity and struggle to secure loans from traditional financial institutions that may not accept Bitcoin as collateral. This results in locked-up collateral that remains unproductive in the economy. The solution lies in utilizing Bitcoin collateral to obtain loans, enabling holders to access fiat liquidity for various purposes. Additionally, Bitcoin loans offer quick financing, contrasting with the lengthy process of traditional institutions. Reeds emphasized Bitcoin's reliability as collateral, free from physical depreciation. He also addressed the risks associated with traditional financial systems and highlighted how Bitcoin-collateralized loans could benefit the unbanked and individuals in high-inflation regions.

Lending

Celsius Repays $2.53 Billion to Creditors Amid Bankruptcy Proceedings

Tuesday. August 27 at 7:30 PM

Lending

SEC Settlement with Abra Over Unregistered Lending Product

Tuesday. August 27 at 4:30 PM

The US Securities and Exchange Commission announced a settlement with cryptocurrency platform Abra for not registering its lending product sales. Without admitting guilt, Abra, also known as Plutus Lending, agreed to pay fines and follow securities laws. The SEC accused Abra of selling securities without proper registration and operating as an unregistered investment company. Abra promoted its Earn service as a way for investors to earn interest effortlessly but allegedly profited itself. The platform ceased Abra Earn in 2022 and transferred assets to users' trade accounts. This settlement follows Abra's previous legal issues with state regulators and fines from the SEC and CFTC. The SEC emphasized the importance of following securities laws to protect investors and prevent conflicts of interest in the crypto space.

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