Dave – Cryptocurrency Expert
Two equity owners of the cryptocurrency lending platform Celsius asked a committee to protect their rights in bankruptcy proceedings lately. The investors expressed their concern that the bankruptcy procedure places an excessive amount of emphasis on retail consumers.
To establish a Preferred Equity Committee, the law firm Milbank LLP submitted an application to the bankruptcy court for the Southern District of New York. The Committee will speak for the Series A and Series B shareholders and will give them preference in the sale of the Celsius mining operations and the custodial firm GK8.
According to the two firms, if these procedures weren't taken, the court case "would be unjustly and inequitably weighted in favor of the customers to the detriment of the Equity Holders."
The statement said “Additionally, the debtors have made it very clear that the Unsecured Creditors Committee (UCC) is their partner and that these cases are all about the customer. The Unsecured Creditors Committee (UCC) is laser-focused on maximizing value for the customers without regard for the equity holders.”
A fiduciary should represent the equity holders in the court battle prior to a proposed reorganization plan, according to the attorneys.
The motion further requests that the claim ceiling be established at the claim's worth in US dollars as of the bankruptcy petition filing date. If bitcoin prices increase throughout the procedures, equity holders will profit rather than customers. But if crypto prices fall, customers are hurt. "This is a tremendous bombshell likely to alienate the whole creditor body and constituents," said Thomas Braziel, founder of bankruptcy investment expert 507 Capital.
In the end, cryptocurrency investment provides a lot of opportunities, as there are still a lot of people making money from crypto during the bear market. One who always seeks to learn new things, stays positive and understands the risk will reach success. If you are looking to find out more about crypto you can visit BCBitcoin, here you can find helpful guides for crypto wallets and different coins. This cryptocurrency exchange platform lets you buy and sell cryptocurrency, and serve as a storage for your different crypto assets.
Dear valued BC Bitcoin UK Clients,
I hope this email finds you well. We are reaching out to inform you of some significant changes to our services that directly impact our operations within the United Kingdom. Regrettably, due to the recent regulatory developments introduced by the Financial Conduct Authority (FCA) and the implementation of the new Financial Promotions Regime, BC Bitcoin is no longer able to offer our services to clients based in the UK. This very difficult decision is in compliance with the regulatory framework and ensures that we uphold the highest standards of transparency and legality. You can view the FCA publication here: https://www.fca.org.uk/publication/finalised-guidance/fg23-3.pdf As a result, we would like to inform you of the following changes and provide guidance on how to manage your assets with BC Bitcoin:
1. **Service Termination for UK Clients:**
BC Bitcoin will no longer be able to accept new purchase orders from clients residing in the United Kingdom.2. **Continued Operation Outside the UK:**
Despite the changes within the UK, BC Bitcoin will continue to operate outside of the UK as normal. Our services will remain unaffected for clients in other regions.3. **Withdrawal of Assets:**
For our UK clients holding assets with BC Bitcoin, we want to assure you that your assets are secure. You have the option to safely withdraw your assets or exchange them to GBP or EUR and subsequently withdraw. We have streamlined the withdrawal process to ensure convenience for our clients.4. **Conversion of Assets:**
To convert your Holdings to fiat please log in to your BC Bitcoin account and submit a sell order for the amount of coin you hold with us. During the process you will shown how much you will receive and asked the bank details you wish to receive payment to. In addition, you can request the conversion by emailing info@bcbitcoin.com from your registered email address. If you encounter any issues or require assistance, our customer support team is ready to help you throughout the process.5. **Withdrawal Procedure:**
To initiate a withdrawal, please email your request to info@bcbitcoin.com from your registered email address. You may be asked some security questions to verify your identity. If you encounter any issues or require assistance, our customer support team is ready to help you throughout the process. These changes are effective immediately, and we appreciate your understanding and cooperation during this transitional period. We understand that this may be an inconvenience for our UK clients, and we sincerely apologise for any disruption this may cause. Thank you for being a valued part of the BC Bitcoin community. We are committed to providing you with a seamless experience as we navigate through these regulatory changes. If you have any questions or concerns, please do not hesitate to reach out to our customer support team at info@bcbitcoin.com Kind Regards