Today in Crypto: Celsius, withdrawals are closed

Babel Finance, a cryptocurrency firm that is bowing to the weight of significant debt, wants to hire the American restructuring firm Houlihan Lokey, CoinDesk reported on Friday (July 1), citing anonymous sources.

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

See also: Crypto lender Babel announces debt relief

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

On July 1, the company filed for Chapter 15 bankruptcy in the U.S. Bankruptcy Court for the Southern District of New York. Chapter 15 processing generally allows for cooperation between trustees who handle bankruptcies in foreign jurisdictions and courts in the United States.

Read more: The court orders the liquidation of the Three Arrows Crypto Fund

Three Arrows was joined in the filing by two trustees appointed on the British Virgin Island to administer the liquidation of Three Arrows.

Furthermore, 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 starting to lose hope that they will ever see their money.

Three weeks after the company stopped withdrawing, the Journal reported that customers are learning the hard way that Celsius was not a traditional bank.

In other news, no matter how many times Tether’s supporters say that stablecoin is well supported by assets, investors are still behaving as if they were nervous, Bloomberg reported on Sunday.

The report noted that Tether’s reserves are dollar and dollar equivalent assets and allow the company to maintain its 1: 1 link to the dollar. The market value of Tether fell by about $ 600 million this week, according to CoinGecko data.

Finally, the recent departure of Argentina’s finance minister has prompted his countrymen 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 a high cryptocurrency adoption, and after the termination, the cost of buying USDT stablecoin with Argentine currency increased.