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Judge Martin Glenn has denied the request for establishing a separate class of stakeholders within the Celsius Network chapter saga. This decision, revealed in a doc filed on August 25, additionally sidestepped the essential query of whether or not the CEL token qualifies as a safety.

Push for Distinct Representation

In July, Otis Davis, an investor, approached the United States Bankruptcy Court, Southern District of New York, advocating for a particular authorized class for Celsius Network’s traders. This transfer aimed to distinguish them from the corporate’s workers and buyer base.

📢 In a setback for stakeholders, a decide has denied their request for illustration within the Celsius chapter case. Despite latest rulings within the SEC vs Ripple case, the decide additionally declined to declare CEL token as “not a security.” #Celsius #Bankruptcy #SECvsRipple

— Block Savvy (@Block_Savvy) August 25, 2023

Davis’ plea additional emphasised the necessity for the court docket to label CEL “not a security.” He drew parallels with the latest SEC vs. Ripple case, the place, in accordance with him, the XRP token was not deemed a safety.

However, in a swift response, Judge Glenn refuted all these motions in a brief span, simply eleven days after the presentation of the argument on August 14.

Moreover, Judge Glenn emphasised that the present order doesn’t signify any choice below the federal securities legal guidelines on crypto tokens or related transactions being securities. Hence, he maintained a transparent path for the U.S. Securities and Exchange Commission to problem such crypto transactions on varied grounds.

CEL’s Valuation Remains Contentious

Celsius’ administration intends to worth CEL at $0.25 of their proposed plan. This transfer is a part of their technique to expedite the sale to crypto consortium Fahrenheit, aiming to revert funds to their collectors. This valuation witnessed a slight enhance from the earlier fee of $0.20 and was not too long ago endorsed by Glenn.

However, sure token holders believed that CEL ought to have retained its worth at $0.80 when Celsius declared chapter. But with allegations of market manipulation swirling round, the court docket indicated that even a zero valuation wasn’t off the desk. The firm’s counter-argument said that buying and selling costs weren’t an genuine reflection because the CEL market confronted alleged manipulation.

Kelvin is a distinguished author specializing in crypto and finance, backed by a Bachelor’s in Actuarial Science. Recognized for incisive evaluation and insightful content material, he has an adept command of English and excels at thorough analysis and well timed supply.

The introduced content material might embody the non-public opinion of the writer and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The writer or the publication doesn’t maintain any duty for your private monetary loss.