Celsius Obtains Bankruptcy Court Approval for Restructuring Plan

Leonardo Perez
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Celsius Obtains Bankruptcy Court Approval for Restructuring Plan

The Bankruptcy Court approved the compensation plan presented by Celsius at the beginning of October, so the company will be able to begin compensating those affected in the coming days. It remains to be seen whether the SEC fully agrees.

The New York bankruptcy court approved Celsius Network’s restructuring plan, effectively allowing the cryptocurrency lending platform to emerge from bankruptcy.

Meanwhile, the US Securities and Exchange Commission (SEC) has yet to give the green light to the company’s new bitcoin mining venture.

Thus, the cryptocurrency-based financial services company that suspended operations last year, Celsius Network, will apparently be able to emerge from bankruptcy after the approval of its new compensation plan by the respective court.

Celsius Comes Out of Bankruptcy

More than a year after filing for Chapter 11 bankruptcy and freezing its clients’ funds, Celsius will now be able to move forward with its restructuring and repayment plan following an order from Judge Martin Glenn of the United States Bankruptcy Court, Southern District of New York.

According to an excerpt of the court ruling, Judge Glenn said: “The Plan is confirmed pursuant to section 1129 of the Bankruptcy Code.” The court approval marks a significant development for the company, which experienced a liquidity crisis and collapsed in 2022.

Celsius’ restructuring plan proposes transitioning to a new creditor-owned bitcoin mining entity called NewCo and involves redistributing $2 billion in BTC and ETH to clients, along with shares in the newly created company,

A consortium made up of a group of companies, including Coinbase, called Fahrenheit LLC, will manage NewCo. As CriptoPatata previously reported, the majority of Celsius’ creditors voted in favor of the plan.

Despite the latest developments, NewCo will need approval from the SEC, according to a Bloomberg report. Judge Glenn previously asked the US securities regulator to decide whether or not the agency will give the green light to Celsius’ plan.

The new entity under which Celsius will be taken over, NewCo, plans to distribute some USD $450 million in initial financing, and subsequently release the rest of the funds based on the schedule proposed in the contemplated plan.

Meanwhile, if the bitcoin mining plan fails, the cryptocurrency lender may go into liquidation, according to the report.

Alex Mashinsky Will Be Tried in 2024

As it may be recalled, US authorities captured and frozen the funds of its former CEO, Alex Mashinsky, who faces fraud charges brought by the SEC and the CFTC.

With Celsius cleared to emerge from bankruptcy, the company’s former CEO Alex Mashinsky will stand trial in September 2024. Mashinsky, accused of defrauding Celsius customers and manipulating the value of the platform’s native currency, CEL , was arrested in July 2023 and later released on $40 million bail.

However, the former Celsius boss denied the allegations leveled against him by the US Federal Trade Commission (FTC) and SEC and pleaded not guilty.

Unlike Mashinsky, another former Celsius executive, Roni Cohen-Pavon, pleaded guilty to the criminal charges against him and is working with investigators.

Meanwhile, the cryptocurrency lender reached an agreement with the FTC to pay a $4.7 billion fine, and the company and its entities were prohibited from handling customer funds.

Although SEC authorization is lacking, the move officially makes Celsius the first crypto platform to compensate its clients, as well as associates among those that filed for bankruptcy between 2022 and 2023, following harsh market conditions.

By Leonardo Perez

The Venezuelan Football Federation Launches Virtual Reality Service to Watch Matches

Audy Castañeda
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The Venezuelan Football Federation Launches Virtual Reality Service to Watch Matches

The Venezuelan Football Federation announced that the virtual reality project will be available in streaming for 500 fans who will be the first to enjoy the experience. As they explain, the entire project is directed by a company specialized in virtual reality and will reach fans thanks to the official page of the channel that broadcasts the team. The virtual reality will have a quality of 11K and will allow you to live the entire experience of being in the Monumental de Maturín during the Venezuela match against Ecuador.

This Wednesday, November 8, the Venezuelan Football Federation (FVF) announced the launch of its virtual reality project so that fans of the national team can watch the games as if they were in the stadium.

The project comes from the technology company VR IN SITU and the television channel, Televen. Thanks to this project, fans will be able to enjoy the entire experience of being in a stadium in real time. This service will be offered on November 16 during the Venezuela-Ecuador match for the fifth round of the South American qualifier for the 2026 World Cup.

Virtual Reality: The Venezuelan Football Federation Great Project

The Venezuelan Football Federation (FVF) has been implementing a plan that has among its objectives the greater attraction of fans to their team. With its sights set on the 2026 World Cup, the FVF seeks to get the entire country together to cheer on its team.

One of the big points to address is the fan experience. Venezuela went through a complicated stage in its football. Investment was reduced, facilities deteriorated and transmissions were not as expected.

The FVF decided to solve all the problems that existed by renovating the Monumental de Maturín so that the team has an official home, as well as by making a deal with Televen, a national channel, and launching plans to encourage people to watch the team.

However, since it is impossible for everyone to go to the stadium, they have decided to enter the digital world. This Wednesday, November 8, the Venezuelan Football Federation launched its project to watch the games in virtual reality. This was carried out by VR IN SITU and Televen. The first is a technology company that, according to the FVF statement, specializes in offering virtual reality products, thanks to the Venezuelan work that is mainly responsible for everything they offer.

As they explain, 500 people will be able to use this product for the first time and enjoy an 11K experience of the Vinotinto match against Ecuador. All through the streaming that they will do from the Televen page.

The Venezuelan Football Federation, Pioneer in Virtual Reality

Technology is not a fact apart from football. Teams and national teams are constantly adding new technological tools to optimize their performance and better analyze data.

This progress does not stop only on the fields. They are all looking to add technology to the fan experience when they go to the field. This is mainly with the aim of making the stadiums much more profitable and improving their relationship with the fans.

Thus, the Venezuelan Football Federation advances its objectives and introduces virtual reality technology to the Venezuelan market, one that has been developed hand in hand with artificial intelligence.

By Audy Castaneda

Bitcoin Control Strengthens: Record Long-Term Holdings Indicates Bullish Horizon

Leonardo Perez
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Bitcoin Control Strengthens: Record Long-Term Holdings Indicates Bullish Horizon

Glassnode research notes that the community of long-term Bitcoin holders is not only growing but doing so at an “impressive rate of accumulation.”

Amid fluctuating markets and economic uncertainty, long-term Bitcoin investors are holding onto their coins more firmly than ever. Data from blockchain analytics firm Glassnode reveals a notable trend: a significant portion of Bitcoin’s circulating supply is firmly in the hands of long-term holders, with numbers reaching record levels.

Notably, the trend of Bitcoin holding strong is not a new phenomenon, but the level of accumulation today seems unprecedented. The commitment of this cohort is evidenced by all-time highs in key supply metrics (illiquid supply, coins held (HODLed), and long-term holder supply) that are at an all-time high, according to shared Glassnode insights.

A Dip into the Illiquid Bitcoin Supply

The Glassnode report outlined the current state of the Bitcoin market. The data illustrates that 68% of the circulating supply of Bitcoin has not moved for over a year, indicating a decision by investors to hold on despite volatility and market declines.

The metric of coins held for more than five years is even more telling, making up nearly a third of all Bitcoin in circulation. In terms of illiquid Bitcoin supply (coins held in wallets with little to no spending history), the numbers are also at an all-time high, with over 15.4 million BTC firmly held. This illiquidity is not a static condition, as it grows monthly to 71,000 Bitcoin, according to Glassnode analysis.

According to a Glassnode analyst, this accumulation has coincided with a notable pattern of investors withdrawing their Bitcoin from exchanges into private custody, further solidifying the long-term holding trend. The analyst revealed that “Data suggests that investors continue withdrawing their coins under custody, and over 1.7 million bitcoins have done so since May 2021.”

Bitcoin: Divergence in Holders and Latest Price Action

Glassnode’s report also highlights a significant divergence between the behaviors of long- and short-term Bitcoin holders. While long-term supply is reaching all-time highs, short-term holders’ supply is at all-time lows, indicating a change in spending habits following the currency’s rise above the fundamental benchmark of 30,000 Dollars.

Glassnode analysis suggests that this price is a crucial battleground for bullish sentiment, marking a potential turning point in the market’s trajectory. Meanwhile, over the past week, Bitcoin continued its bullish trend, recording a 2.9% gain. The asset is currently trading at $35,216 at the time of writing, up 1.5% in the last 24 hours.

Two Possible Directions for Bitcoin Price

Given the continued price rejection of the $35,000 zone, there may be a price correction to $31,000 as it seems unlikely to re-enter the long consolidation below $30,000. On the other hand, when considering various fundamental and market sentiment factors, such as renewed hopes for Bitcoin, anticipation of spot ETF approval, which could potentially take the price of BTC to unprecedented highs, and the long-awaited bull run in 2024, among others.

For these reasons, the price might rise steadily. Technical analysis also suggests that if Bitcoin successfully breaks above the $35,000 zone, a continued move towards $47,000 could be expected, with minor resistance levels around $39,000 and $44,000.

Crypto Rover, a popular expert on Bitcoin with over 500,000 followers on X, believes crypto ETF approval and BlackRock involvement will push Bitcoin to $100,000. Many analysts believe that the participation of institutional giants in the ETF lobby will inject billions of dollars into Bitcoin, thus driving up the price.

By Leonardo Perez

Robinhood Plans its Expansion to Europe and Starts in the United Kingdom, And Other News

Audy Castañeda
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Robinhood Plans its Expansion to Europe and Starts in the United Kingdom, And Other News

Robinhood plans its European expansion that promises to change the financial game. To do this, it will establish operations in the United Kingdom.

Popular commission-free trading platform Robinhood has announced its ambitious expansion into Europe in the coming weeks. The news of this strategic move coincides with the release of the company’s third quarter financial results.

Robinhood plans to establish brokerage operations in the United Kingdom as part of its expansion strategy in the European market. This decision comes at a time when the platform seeks to diversify its international presence and take advantage of new opportunities in the financial world.

The company reported that its third-quarter results reflected a decline in revenue, primarily attributed to reduced cryptocurrency trading volumes on the platform.

Despite this, Robinhood reported net income of $467 million, slightly below the average analyst estimate of $478.9 million. However, this figure still represents a growth of 29% compared to the same period last year.

Binance Transforms the Financial Future and Launches Web3 Wallet for DeFi

Binance has taken a significant step in the direction of financial decentralization by launching its own Web3 wallet. This exciting announcement was made during the Binance Blockchain Week conference in Istanbul.

Binance’s Web3 wallet is a versatile tool that will allow users to interact with the growing decentralized finance, or DeFi, ecosystem. One of the most notable features of this new wallet is its ability to operate on 30 different blockchain networks, which considerably expands the opportunities for users to participate in various DeFi projects and platforms.

“Web3 wallets represent more than just storing digital assets; they are an integral part of the Web3 framework, empowering individuals with the ability for self-sovereign finance,” says Changpeng Zhao, Binance’s CEO and founder.

United Arab Emirates Strengthens Cryptocurrency Regulation and Announces Sanctions for Illegal Operators

The Central Bank of the United Arab Emirates (CBUAE) has taken an important step in the regulation of cryptocurrencies and virtual assets in the country. In collaboration with other regulators, they have released a set of guidelines aimed at virtual asset service providers (VASPs). The objective is to ensure that operations in this area comply with the required standards and licenses.

One of the most notable developments is the imposition of severe penalties for those VASPs who operate without the proper licenses. These sanctions could include significant fines and suspension of operations. In short, the message is clear: it is essential to operate legally and transparently in the UAE virtual asset market.

USDC Issuer Circle May Consider IPO in 2024, And Explores IPO Options

Circle Internet Financial, the issuer of the popular USDC stablecoin, is considering taking a significant step in its financial future by considering an IPO in early 2024. The news has sparked conversations with advisors as the company prepares for a potential initial public offering (IPO).

Although these talks remain in their early stages and there is uncertainty as to whether Circle will move forward with the listing. The very fact that they are considering this option suggests a major change in the company’s strategy.

The valuation Circle would seek in a potential IPO has not yet been disclosed. But it’s important to note that in 2022, the company was valued at $9 billion in a previous attempt to go public through a blank check deal.

By Audy Castaneda

Runoff in Argentina: What Do Both Candidates Think of Cryptocurrencies?

Leonardo Perez
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Runoff in Argentina: What Do Both Candidates Think of Cryptocurrencies?

On Sunday, November 19, Sergio Massa, current Minister of Economy, and the libertarian leader Javier Milei will compete for the presidency of Argentina. A recent survey revealed that voters of both candidates in the runoff are the most interested in cryptocurrencies. What both contenders think about virtual assets is not minor, since Argentina appears 15th in the global adoption index prepared by Chainalysis.

These days the campaign for the second and final electoral round in Argentina is underway. On Sunday, November 19, two very different views on central aspects of political life will compete to succeed Alberto Fernández. The current Minister of Economy and candidate of the “Unión por la Patria” party, Sergio Massa, and the libertarian outsider Javier Milei.

The leader of the “La Libertad Avanza” party has recently garnered support from the “Together for Change” space, led by former president Mauricio Macri, who came third in the general elections last October.

What the Candidate for President of Argentina Sergio Massa Thinks about Cryptocurrencies

The proposals of both candidates regarding cryptocurrencies did not play a fundamental role in the campaign. However, each one has clearly shown what they think about that industry, and the impressions of both contenders in that area will be collected.

A review that may present some clues as to how cryptocurrencies would fare in the event of an eventual victory for any of the applicants. What, without a doubt, must be clear is the strong adoption that virtual assets have in a country with more than 100 annual inflation points.

For a good part of Argentines, what the next President thinks about cryptocurrencies is a transcendental question. The ruling party in Argentina has had internal differences in recent years that it maintains today.

On the one hand there are the so-called “hard Kirchnerists”, whose view of cryptocurrencies has been and is critical. On the other hand, there are those who are interested in new technologies and, particularly, pay attention to the data that makes Argentina a strongly crypto country.

The current government even discouraged the use of cryptocurrencies, considering them a mechanism for money laundering. Added to this was a strong campaign to find clandestine virtual asset mining spaces. But that reality changed with the arrival at the Ministry of Economy of someone who is today one of the contenders in the second electoral round.

What the Candidate for President of Argentina Javier Milei Thinks about Cryptocurrencies

The eccentric candidate and leader of the “La Libertad Avanza” coalition has historically been in favor of the use of virtual assets and the implementation of new technologies. The candidate for the presidency of Argentina and Massa’s rival in the November 19 runoff promotes a decentralized economic philosophy. Milei made this economic perspective explicit with his proposal to eliminate the Central Bank (BCRA).

“The Central Bank is a scam. It is a mechanism by which politicians defraud good people with the inflation tax. Bitcoin represents the return of money to its original creator, which is the private sector. The problem is that the states will not give up the forced course of the issuance, because that is where they scam.”

Javier Milei has received severe questions for advising to invest in CoinX. This is a platform that became famous for being a pyramid scam. As a recipe to fight Argentina’s inflation, the economist advised his followers to invest in this scheme.

By Leonardo Perez

An Agreement Reached on the EU Digital Identity: A Risk?

Audy Castañeda
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An Agreement Reached on the EU Digital Identity: A Risk?

The EU Council and the European Parliament recently announced a provisional agreement on the European Digital Identity (eID)

The EU Council and the European Parliament recently concluded a provisional agreement on the European Digital Identity (eID).

“With the approval of the European Digital Identity Regulation we are taking a fundamental step so that citizens can have a unique and secure European digital identity. This is a key step forward for the European Union to be a benchmark in the digital field, protecting our rights. and democratic values,” said Nadia Calviño, First Vice President and Acting Minister of Economic Affairs and Digital Transformation.

However, this agreement raises legitimate concerns about the privacy of citizens, especially in the context of a possible interconnection between electronic identification and the future central bank digital currency (CBDC).

European Digital Identity (eID), A Paradigm Shift

The EU Council and the European Parliament recently announced an interim agreement on the European Digital Identity (eID), a development that raises major concerns, particularly regarding privacy protection.

This agreement provides a framework for reliable and secure digital identification for all European citizens, with the aim of ensuring universal access to secure electronic devices. However, some experts fear the possible link that could arise between eID and the future central bank digital currency (CBDC) of the European Union.

Introduced in June 2021, the regulation establishes that member states will offer digital wallets to citizens and companies, allowing their national digital identity to be linked to various documents, such as driving licenses, diplomas or bank accounts. This approach will facilitate identity proofing and electronic document sharing, eliminating the need to use private or common identification methods.

At first glance this seems to offer some comfort, but the crucial question lies in the potential link with the digital euro that is developing.

Privacy Concern

Digital identification is an important technological advance, but it can carry considerable privacy risks. For Bob Roos, member of the European Parliament and vice-president of the ECR, this is “a very bad idea” and he asks all MEPs to vote against it.

“Immediately afterwards, European Commissioner Thierry Breton said: “Now that we have a digital identity wallet, we need to put something in it…”, suggesting a link between CBDC and eID.

They ignored all the privacy experts and security specialists. They take it to the end.”

Proponents of the digital euro have already faced unexpectedly strong political opposition, mainly due to concerns about privacy, government control and even conspiracy theories. If the eID is linked to the CBDC, this could mean greater monitoring and surveillance of the financial activities of European citizens.

Privacy Protection and Data Control

To address these concerns, privacy protection measures are necessary. The introduction of the zero-knowledge proof protocol, mentioned in the amendments relating to electronic identification by the ITRE committee of the European Parliament (Committee on Industry, Research, Telecommunications and Energy), aims to offer European citizens control absolute control over your personal data, avoiding any misuse or misappropriation of sensitive data.

However, it is essential that European legislators remain vigilant to ensure full respect of citizens’ rights to privacy and security. The potential association between e-ID and CBDC must be carefully examined to avoid any disproportionate invasion of the privacy of European citizens.

The future of digital identity in Europe must be based on principles of security and respect for privacy.

By Audy Castaneda

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