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Judge denies stakeholders’ request for representation in Celsius bankruptcy case

Press Releases Crypto News Cointelegraph Judge denies stakeholders’ request for representation in Celsius bankruptcy case

Judge Martin Glenn shot down efforts to have a special shareholders class declared in the Celsius Network bankruptcy case in a court document filed on Aug. 25. The judge also declined to settle whether or not the Celsius (CEL) token was a security.

In a motion filed on July 25 and heard before the United States Bankruptcy Court for the Southern District of New York on Aug. 14, investor Otis Davis asked the court to create a legal class for investors to be considered separate from Celsius Network employees and customers.

Davis also requested that the court sanction the legal team representing the Unsecured Creditors Committee (UCC) over the alleged failure to disclose required information.

The filing further asked the court to declare CEL “not a security” in light of the recent findings in the U.S. Securities and Exchange Commission (SEC) v. Ripple case, where, according to Davis, Judge Analisa Torres determined that XRP (XRP) was not a security.

It’s worth mentioning that, in the XRP case, Torres ruled that XRP was not a security in regard to programmatic sales on digital asset exchanges. In the same ruling, however, Torres said that XRP was a security when sold to institutional investors.

In the Celsius bankruptcy case, Glenn’s response was relatively swift, denying all three motions set forth just 11 days after the motion was argued in an Aug. 14 hearing.

Glenn shot down all of the motion’s requests and further added:

“[N]othing 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 a

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Author: Tristan Greene

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