Regulatory Objections To Asset Distribution Plan Via Coinbase 1

Key Points:

• Celsius SEC Lawsuit: The SEC has filed objections to Celsius Network’s plan to distribute digital assets through Coinbase as part of its bankruptcy restructuring.
• Celsius Network’s bankruptcy, which occurred over a year ago, is now undergoing a restructuring process that involves regulatory concerns due to Coinbase’s involvement.

Recently, the Celsius SEC Lawsuit has voiced concerns about Coinbase’s involvement in the bankruptcy restructuring plan of Celsius Network.

According to Walter Bloomberg, The Securities and Exchange Commission (SEC) has raised concerns about the role of Coinbase in Celsius Network’s bankruptcy restructuring plan.

Celsius Network, a crypto firm that filed for bankruptcy over a year ago, is currently seeking approval from the bankruptcy court for its proposed reorganization plan.

Under Celsius Network’s proposed reorganization plan, Coinbase is set to play a pivotal role by providing brokerage and master trading services. However, the SEC has raised objections, citing concerns related to activities that initially triggered litigation by the regulatory body.

The ongoing lawsuit against Coinbase, initiated earlier this year by the SEC, alleges that the cryptocurrency exchange operated an unregistered securities exchange.

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