Last week, Celsius Network wrote its name alongside Terra in its alarmingly recent history of crypto market failure. The US platform has unpacked $247 million worth of wrapped bitcoin (wBTC) from the Aave protocol and sent it to crypto exchange FTX, while turning off withdrawal options for users.
Soon after, the United States securities regulators in five states – Alabama, Kentucky, New Jersey, Texas and Washington – began investigating Celsius. This is not the first time the platform is facing suspicion from law enforcement. In September 2021, the Texas State Securities Board scheduled a hearing related to allegations that the network had offered and sold securities in the state that were not registered or permitted.
What is worrying, however, is that Celsius may not appear as a single case of poor management, but as a persistent first victim amid the ongoing liquidity crisis in crypto. By the end of the week, Hong Kong-based asset manager Babel Finance announced a temporary suspension of redemptions and withdrawals from its products, citing “unusual liquidity pressures.”
Gary Gensler attacks Loomis-Gillibrand bill
United States Securities and Exchange Commission (SEC) Chairman Gary Gensler acknowledged he is concerned, and that his concern is aimed at the recently published “Responsible Financial Innovation Act”, co-sponsored by Senators Cynthia Loomis and Kirsten Gillibrand. . Speaking at the Wall Street Journal’s CFO Network Summit, Gensler said the bill has the potential to “undermine the security we have in a $100 trillion capital market.”
Last minute veto in Panama
Sometimes months or years of optimistic development can stop in an instant. This happened in Panama, as the country’s President Laurentino Cortizo has partially vetoed Bill No. 697. A “crypto bill” passed the National Assembly voting in April 2022, but Cortizo was very clear even at the time, threatening to veto the document unless it was. Additional Anti-Money Laundering (AML) rules are included. Should the bill eventually receive the President’s signature, it would make Panama the second Central American country to regulate the spending of cryptocurrencies.
A Dogecoin lawsuit for Elon Musk
Billionaire Elon Musk has been used for $258 billion on charges of being “involved in a crypto pyramid scheme” involving Dogecoin (DOGE): a number that may be a bit audacious, as it marks Dogecoin’s all-time high market share. More than three times the cap. In the filing, one of the plaintiffs said that Musk and his corporations were “unjustly enriched” by $86 billion as a result of wire fraud, gambling ventures, false advertising, deceptive practices and other illegal conduct. This matter can certainly bring color in the media.