Sun Readies USD 5B uses, Celsius’ trade “exposed”, CoinFlex goes to HK Courts

Tron (TRX) founder Justin Sun says he is ready to spend big money on acquisitions when another week of cryptocurrency begins – and there are also developments from Celsius (CEL) (as usual!), While the exchange CoinFlex can be ready to tense their legal muscles on Roger Ver.

Here is everything you need to know:

The sun is ready to shine on struggling crypto companies

I’m tweeting, Sun. wrote that Tron was “friends with all” and “always ready to serve.” He further told The Block that “many” companies had already contacted both Tron and Sun for financial assistance – with many companies in the sector continuing to struggle.

Sun added that he was willing to spend up to $ 5 billion, and that Tron “engaged an investment bank” to “advise on potential deals”.

The Tron chief was quoted as explaining:

“Our interest is platforms with a large user base – both [centralized finance] and [decentralized finance] DeFi platforms. “

Sun concluded that “the worst” of the “de-leverage process” had “passed”, but believed that the industry “just” needed to “clean up and move on.”

Celsius still in hot water

Cryptocurrency lender Celsius, which has had a fiery, eventful summer, is said to have spent $ 534 million of customers’ cryptocurrencies to implement “high-risk leveraged crypto trading strategies”.

The allegations were made in a report on the Celsius Network by the blockchain analysis specialist Arkham Intelligence. The company stated that Celsius carried out its “strategies” with the help of a third-party manager – namely the “infamous Twitter personality and Ethereum wallet address 0xB1.”

However, the strategies yielded “apparent losses of $ 350 million when the asset manager returned capital” – a figure that has shrunk further since the market crisis, Arkham analysts added.

Arkham reported that Celsius had “potential gaps in risk management and corporate fund accounting,” saying that evidence of this was to be seen “in relation to” 0xB1.

The research firm claimed that from August 2020 to April 2021, Celsius handed over the aforementioned $ 534 million in tokens in 260 transactions.

0xB1, the company added, and then continued to invest these funds in a number of DeFi-related projects.

The Wall Street Journal, meanwhile, reported that Celsius has hired “new lawyers for restructuring councils”, citing unnamed “people familiar with the matter”.

The same sources confirmed that Celsius had hired lawyers from the world’s largest law firm by revenue – Kirkland and Ellis. The latter has been drafted to “advise on alternatives, including a bankruptcy filing, which will replace the company’s former leading restructuring lawyer,” the sources claimed.

CoinFlex on its way to court

The cryptocurrency trading platform CoinFlex, which was founded in 2019 by Mark Lamb and Sudhu Arumugam, is ready to take legal action against an unnamed client believed to be Roger Ver, the Bitcoin Cash (BCH) campaigner.

In a blog post, the stock exchange – which suspended withdrawals in June – wrote that they had started an arbitration case in Hong Kong in an attempt to recover $ 84 million in losses from the client.

Lamb has previously claimed that Ver breached a loan agreement on USD Coin (USDC) worth USD 47 million. Lamb has claimed that Ver is contractually obliged to “guarantee any negative equity”, even though Ver has publicly stated that he is the one who owes money.

In the latest CoinFLEX post, Oslo Børs wrote that it thought it would take the company around a year to get a ruling that would allow it to claim the unnamed client’s assets.

The exchange wrote:

“The person first asked us to liquidate his account, but then went on to tell us for a long time afterwards that he wanted to send significant funds to the stock exchange to take physical delivery of the futures positions.”

But, the stock exchange added, it is now “clear to us” that the client actually “wasted time and hope for a bounce in the market that was never realized.”
___
Learn more:
– Today in cryptouro: misery, legal development and repayment development from Celsius, 3AC, Voyager Digital and more
– Crypto Turmoil Latest: Celsius in Board Changes, Genesis Clear of 3AC Trouble & FTXs ‘Billions’

– Voyager digital files for chapter 11, seeks to ‘maximize value for all stakeholders’
– Troubled Crypto Fund Three Arrows Capital has $ 7.5 million in Blue-Chip NFTs – Report

– Crypto chaos continues when the loan company cuts the withdrawal limit, 3AC moves funds and Celsius apparently pays the producer
– DeFi suffers from too much centralization, what can be done?