{"id":53310,"date":"2023-08-26T13:06:37","date_gmt":"2023-08-26T17:06:37","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/judge-cites-ripple-case-in-rejecting-cels-security-classification-in-bankruptcy-proceedings\/"},"modified":"2023-08-26T13:06:40","modified_gmt":"2023-08-26T17:06:40","slug":"judge-cites-ripple-case-in-rejecting-cels-security-classification-in-bankruptcy-proceedings","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=53310","title":{"rendered":"Judge Cites Ripple Case in Rejecting CEL’s Security Classification in Bankruptcy Proceedings"},"content":{"rendered":"
\n

A bankruptcy judge has refused to determine whether CEL, the native token of\u00a0Celsius<\/strong>, should be classified as a security, citing the ongoing legal battle between\u00a0Ripple Labs<\/strong>\u00a0and the US\u00a0Securities and Exchange Commission (SEC)<\/strong>.\u00a0<\/p>\n

Otis Davis<\/strong>, one major CEL token order, had previously asked the judge to “recognize the legal precedent that has been set in the Ripple\/XRP case” in order to establish a separate committee for CEL token holders.\u00a0<\/p>\n

However, Chief US Bankruptcy Judge Martin Glenn\u00a0denied Davis’ motion, among others, on Friday.\u00a0<\/p>\n

He clarified in his order that the court’s decision did not constitute a definitive conclusion on whether crypto tokens or transactions involving them should be considered securities under federal securities laws.\u00a0<\/p>\n

The order explicitly reserved the right for both the SEC and the committee to challenge any transactions involving crypto tokens.<\/p>\n

\u201cNothing in the Motions, this Order, or announced at the Hearing constitutes a finding under the federal securities laws as to whether crypto tokens or transactions involving crypto tokens are securities,” the judge said.\u00a0<\/p>\n

The legal dispute between the SEC and Ripple began in 2020 when the agency accused Ripple of illegally raising $1.3 billion through the sale of XRP, claiming it to be an unregistered security.\u00a0<\/p>\n

Last month, a US court\u00a0ruled in favor of Ripple\u00a0in the ongoing lawsuit brought by the SEC, claiming that selling XRP on exchanges in itself does not constitute an investment contract.\u00a0<\/p>\n

The ruling, issued by\u00a0Judge Analisa Torres<\/strong>\u00a0of the US District Court for the Southern District of New York, stated that the \u201coffer and sale of XRP on digital asset exchanges did not amount to offers and sales of investment contracts.\u201d<\/p>\n

However, she also determined that other direct sales of XRP to institutional investors qualified as securities, granting a partial victory to the SEC.\u00a0<\/p>\n

This ruling has since been referenced in other court cases, including a separate matter involving Terraform Labs.<\/p>\n

Examiner Claims Celsius Inflated CEL Token Price to Benefit Executives<\/h2>\n

Shoba Pillay, a court-appointed examiner who investigated Celsius\u2019 handling of CEL tokens and marketing strategy,\u00a0said\u00a0earlier this year that the company\u2019s business model \u201cdiffered significantly\u201d from what it told customers.\u00a0<\/p>\n

She even claimed that Celsius \u201con a stand-alone basis has been insolvent since inception” and that the crypto lender used CEL as the centerpiece of a scheme to enrich executives at customers\u2019 cost.\u00a0<\/p>\n

According to the investigation, Celsius spent at least $558 million to purchase CEL tokens on open markets, which led to the token price soaring more than 14,000% since the start of mid-2020.\u00a0<\/p>\n

The inflated price favored top company executives, including CEO Alex Mashinsky and co-founder Daniel Leon, who sold CEL worth at least $68.7 million and $9.74 million between 2018 and 2022, respectively.\u00a0<\/p>\n

\n

\u201cCelsius often sought to protect CEL from price drops that it attributed to Mr. Mashinsky\u2019s sales of large amounts of his personal CEL holdings. As a result of Mr. Mashinsky\u2019s sales, Celsius often increased the size of its resting orders to buy all of the CEL that Mr. Mashinsky and his other companies were selling.\u201d<\/p>\n<\/blockquote><\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

A bankruptcy judge has refused to determine whether CEL, the native token of\u00a0Celsius, should be classified as a security, citing the ongoing legal battle between\u00a0Ripple Labs\u00a0and the US\u00a0Securities and Exchange Commission (SEC).\u00a0 Otis Davis, one major CEL token order, had previously asked the judge to “recognize the legal precedent that has been set in the […]<\/p>\n","protected":false},"author":1,"featured_media":53311,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[243],"tags":[83],"class_list":["post-53310","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto","tag-featured"],"yoast_head":"\nJudge Cites Ripple Case in Rejecting CEL's Security Classification in Bankruptcy Proceedings | iFintechWorld<\/title>\n<meta name=\"description\" content=\"A bankruptcy judge has refused to determine whether CEL, the native token of\u00a0Celsius, should be classified as a security, citing the ongoing legal battle\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=53310\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Judge Cites Ripple Case in Rejecting CEL's Security Classification in Bankruptcy Proceedings | iFintechWorld\" \/>\n<meta property=\"og:description\" content=\"A bankruptcy judge has refused to determine whether CEL, the native token of\u00a0Celsius, should be classified as a security, citing the ongoing legal battle\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ifintechworld.com\/?p=53310\" \/>\n<meta property=\"og:site_name\" content=\"iFintechWorld\" \/>\n<meta property=\"article:published_time\" content=\"2023-08-26T17:06:37+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-08-26T17:06:40+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/08\/adobestock-timon-1-media-.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1350\" \/>\n\t<meta property=\"og:image:height\" content=\"760\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/ifintechworld.com\/?p=53310#article\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=53310\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\"},\"headline\":\"Judge Cites Ripple Case in Rejecting CEL’s Security Classification in Bankruptcy Proceedings\",\"datePublished\":\"2023-08-26T17:06:37+00:00\",\"dateModified\":\"2023-08-26T17:06:40+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=53310\"},\"wordCount\":524,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"keywords\":[\"Featured\"],\"articleSection\":[\"Crypto\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/ifintechworld.com\/?p=53310#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ifintechworld.com\/?p=53310\",\"url\":\"https:\/\/ifintechworld.com\/?p=53310\",\"name\":\"Judge Cites Ripple Case in Rejecting CEL's Security Classification in Bankruptcy Proceedings | iFintechWorld\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/#website\"},\"datePublished\":\"2023-08-26T17:06:37+00:00\",\"dateModified\":\"2023-08-26T17:06:40+00:00\",\"description\":\"A bankruptcy judge has refused to determine whether CEL, the native token of\u00a0Celsius, should be classified as a security, citing the ongoing legal battle\",\"breadcrumb\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=53310#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/ifintechworld.com\/?p=53310\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/ifintechworld.com\/?p=53310#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/ifintechworld.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Judge Cites Ripple Case in Rejecting CEL’s Security Classification in Bankruptcy Proceedings\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/ifintechworld.com\/#website\",\"url\":\"https:\/\/ifintechworld.com\/\",\"name\":\"Repay Down\",\"description\":\"Latest Personal Finance News, Tips and Updates\",\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/ifintechworld.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/ifintechworld.com\/#organization\",\"name\":\"Repay Down\",\"url\":\"https:\/\/ifintechworld.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"width\":558,\"height\":90,\"caption\":\"Repay Down\"},\"image\":{\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/ifintechworld.com\"],\"url\":\"https:\/\/ifintechworld.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Judge Cites Ripple Case in Rejecting CEL's Security Classification in Bankruptcy Proceedings | iFintechWorld","description":"A bankruptcy judge has refused to determine whether CEL, the native token of\u00a0Celsius, should be classified as a security, citing the ongoing legal battle","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/ifintechworld.com\/?p=53310","og_locale":"en_US","og_type":"article","og_title":"Judge Cites Ripple Case in Rejecting CEL's Security Classification in Bankruptcy Proceedings | iFintechWorld","og_description":"A bankruptcy judge has refused to determine whether CEL, the native token of\u00a0Celsius, should be classified as a security, citing the ongoing legal battle","og_url":"https:\/\/ifintechworld.com\/?p=53310","og_site_name":"iFintechWorld","article_published_time":"2023-08-26T17:06:37+00:00","article_modified_time":"2023-08-26T17:06:40+00:00","og_image":[{"width":1350,"height":760,"url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/08\/adobestock-timon-1-media-.jpeg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/ifintechworld.com\/?p=53310#article","isPartOf":{"@id":"https:\/\/ifintechworld.com\/?p=53310"},"author":{"name":"News Room","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61"},"headline":"Judge Cites Ripple Case in Rejecting CEL’s Security Classification in Bankruptcy Proceedings","datePublished":"2023-08-26T17:06:37+00:00","dateModified":"2023-08-26T17:06:40+00:00","mainEntityOfPage":{"@id":"https:\/\/ifintechworld.com\/?p=53310"},"wordCount":524,"commentCount":0,"publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"keywords":["Featured"],"articleSection":["Crypto"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/ifintechworld.com\/?p=53310#respond"]}]},{"@type":"WebPage","@id":"https:\/\/ifintechworld.com\/?p=53310","url":"https:\/\/ifintechworld.com\/?p=53310","name":"Judge Cites Ripple Case in Rejecting CEL's Security Classification in Bankruptcy Proceedings | iFintechWorld","isPartOf":{"@id":"https:\/\/ifintechworld.com\/#website"},"datePublished":"2023-08-26T17:06:37+00:00","dateModified":"2023-08-26T17:06:40+00:00","description":"A bankruptcy judge has refused to determine whether CEL, the native token of\u00a0Celsius, should be classified as a security, citing the ongoing legal battle","breadcrumb":{"@id":"https:\/\/ifintechworld.com\/?p=53310#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ifintechworld.com\/?p=53310"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/ifintechworld.com\/?p=53310#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ifintechworld.com\/"},{"@type":"ListItem","position":2,"name":"Judge Cites Ripple Case in Rejecting CEL’s Security Classification in Bankruptcy Proceedings"}]},{"@type":"WebSite","@id":"https:\/\/ifintechworld.com\/#website","url":"https:\/\/ifintechworld.com\/","name":"Repay Down","description":"Latest Personal Finance News, Tips and Updates","publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ifintechworld.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ifintechworld.com\/#organization","name":"Repay Down","url":"https:\/\/ifintechworld.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","width":558,"height":90,"caption":"Repay Down"},"image":{"@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","caption":"News Room"},"sameAs":["https:\/\/ifintechworld.com"],"url":"https:\/\/ifintechworld.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/53310","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=53310"}],"version-history":[{"count":1,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/53310\/revisions"}],"predecessor-version":[{"id":53312,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/53310\/revisions\/53312"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/media\/53311"}],"wp:attachment":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=53310"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=53310"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=53310"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}