Home Finance specialist Today in Crypto: Celsius Keeps Withdrawals Closed

Today in Crypto: Celsius Keeps Withdrawals Closed

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Babel Finance, a cryptocurrency firm that is bending under the weight of significant debt, is looking to hire US-based restructuring firm Houlihan Lokey, CoinDesk reported on Friday (July 1), citing unnamed sources.

CoinDesk said neither Babel Finance nor Houlihan Lokey responded to requests for comment. On June 20, several days after withdrawals and redemptions halted, Babel said on its website that it had “reached preliminary agreements on the repayment of certain debts.”

See also: Crypto lender Babel announces debt relief

Meanwhile, Three Arrows Capital, which was ordered liquidated last week by a court in the British Virgin Islands, has taken steps in the United States to coordinate the disposal of its assets and maximize their value.

The company filed for Chapter 15 bankruptcy July 1 in the U.S. Bankruptcy Court for the Southern District of New York. Chapter 15 proceedings generally permit cooperation between bankruptcy trustees in foreign jurisdictions and courts in the United States.

Read more: Court Orders Liquidation of Three Arrows Crypto Fund

Three Arrows have been joined in the case by two administrators appointed in the British Virgin Islands to manage the liquidation of Three Arrows.

Additionally, The Wall Street Journal reported on Sunday (July 3) that customers who were caught when Celsius stopped allowing withdrawals or redemptions in mid-June are beginning to lose hope of ever seeing their money.

Three weeks after the company ceased withdrawals, the Journal reported that customers are learning the hard way that Celsius is not a traditional bank.

In other news, no matter how many times Tether proponents say the stablecoin is well-backed by assets, investors still act like they’re nervous, Bloomberg reported on Sunday.

The report notes that Tether’s reserves are dollars and dollar-equivalent assets and allow the company to maintain its 1:1 peg to the dollar. Tether’s market value fell by around $600 million this week, according to data from CoinGecko.

Finally, the recent resignation of Argentina’s finance minister has prompted his compatriots to seek financial refuge in crypto, Bloomberg reported on Saturday (July 2).

The crypto market is the only one that operates on Saturdays, according to the report. Argentina has strong crypto adoption, and after the quit, the cost of buying USDT stablecoin with Argentinian currency increased.

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