The United States Securities and Exchange Commission (SEC) opposes the use of crypto exchange Coinbase by the now-bankrupt crypto lender Celsius for distributing crypto assets to creditors.
“There appears to be an additional agreement with Coinbase, which the Debtors seek to file under seal, but it has not been made available to the SEC staff,” the filing noted.
SEC Alleges Lack of Clarity In Coinbase Agreements With Celsius
In a recent court filing, the SEC expressed its disapproval of Celsius Debtor’s recent proposal for Coinbase to assume the role of the distribution agent for international customers.
This implies that Coinbase would be responsible for supervising the return of crypto assets to customers on behalf of Celsius.
However, the SEC argues that the contract lacks sufficient information, and it remains unclear what role Coinbase plays.
“The Coinbase Agreements go far beyond the services of a distribution agent.”
Despite Celsius’ claim, it will not use Coinbase for brokerage services, the agreements allegedly imply otherwise.
The SEC asserts that there is an undisclosed agreement with Coinbase that the debtors intend to file under seal. The SEC staff has not had access to this contract.
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Author: Ciaran Lyons