According to cryptocurrency data aggregator Lookonchain, there has been a significant sell-off of several different cryptocurrencies as the volatility around Celsius Network continues.
A significant amount of altcoins, including 1.27 million LINK, 2.83 million SNX, 12,597 BNB, 4.45 million 1INCH, 8.53 million ZRX, 439,000 FTX, and a noticeably smaller amount of 186,149 BONE, the native token of Shiba Inu, have reportedly started to be liquidated by the network, which is currently dealing with significant legal issues.
The sell-off activity has been connected to a recent change in Celsius Network’s financial administration; following court clearance in July, the business apparently exchanged its altcoin assets for Bitcoin (BTC) and Ethereum (ETH).
Customers of Celsius Network are now unable to access a sizeable amount of their assets as a result of the company’s ongoing bankruptcy procedures.
The most recent information comes as former CEO Alex Mashinsky and Celsius Network are being investigated by the SEC, CFTC, DOJ, and FTC on many counts of fraud and securities manipulation. Following Mashinsky’s recent arrest, Celsius Network has agreed to pay a record-breaking $4.7 billion settlement.
The $5 billion fine against Meta in 2019 eclipses this settlement as the greatest in FTC history. However, the network’s most recent financial actions indicate that this payment may not be made right away since the corporation first plans to surrender any remaining customer assets while the bankruptcy process is still continuing.
The legal issues facing Celsius Network and Mashinsky highlight a challenging time for the cryptocurrency business, when increased regulatory scrutiny is taking place.
Mashinsky maintains his innocence despite the obstacles, and according to his attorney, he eagerly anticipates “vigorously defending himself in court against these baseless charges.”
Investors are preparing for potential side effects of the Celsius Network’s financial restructuring even though the impact on the cryptocurrency market, namely Shiba Inu’s BONE token, has not yet been completely realised.
