Shiba Inu's Bone Part of Massive Altcoin Sell-off Led by Celsius

Mon, 07/17/2023 - 08:26
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The ongoing turbulence surrounding Celsius Network continues with a massive sell-off of various altcoins, as reported by cryptocurrency data tracker Lookonchain.

The network, currently grappling with substantial legal troubles, has reportedly begun to liquidate substantial volumes 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 notably smaller amount of 186,149 BONE, the native token of Shiba Inu.

The sell-off activity has been linked to a recent shift in Celsius Network's financial management, with the company reportedly swapping its altcoin assets for Bitcoin (BTC) and Ethereum (ETH) after receiving court approval in July.

A significant portion of the assets belonging to Celsius Network's customers is currently inaccessible due to the company's ongoing bankruptcy proceedings.

The most recent news comes as former CEO Alex Mashinsky and Celsius Network face numerous charges, including fraud and securities manipulation from the SEC, CFTC, DOJ and FTC. Celsius Network has agreed to pay a record-breaking $4.7 billion settlement, following the recent arrest of Mashinsky.

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The settlement is one of the largest in FTC history, only topped by the $5 billion fine against Meta in 2019. Yet, the network's recent financial activities suggest that this payment will not be immediate, as the company first aims to return what remains of customer assets during the ongoing bankruptcy proceedings.

The legal troubles for Celsius Network and Mashinsky underscore a volatile period for the crypto market, where regulatory scrutiny is intensifying.

Despite the challenges, Mashinsky maintains his innocence, with his counsel stating that he looks forward to "vigorously defending himself in court against these baseless charges."

The impact on the crypto market, notably Shiba Inu's BONE token, is yet to be fully realized, but investors are bracing for potential ripple effects of the Celsius Network's financial reshuffle.