Coinbase Could Earn $1.2B From Higher Interest

Celsius, the cryptocurrency lender that filed in July to reorganize under Chapter 11 of the federal bankruptcy code, on September 16 asked a court for permission to conduct business-as-usual sales of its stablecoins. A proposed order the company filed with U.S. Bankruptcy Court for the Southern District of New York stated, in part that the court would be: “permitting the Debtors to continue to sell stablecoin consistent with past practice and in the ordinary course of the Debtors’ business.”

As PYMNTS reported in July, Celsius sought bankruptcy protection one month after freezing customers’ accounts.

Higher interest rates, which the Fed is imposing in a bid to fight inflation, could produce a $1.2 billion increase in revenue for crypto exchange Coinbase next year, according to a JPMorgan forecast cited by Coindesk. The increased revenue would come from short-term interested generated by customers’ fiat currencies Coinbase has in its possession and by the exchange’s own business funds.

SEC and Ripple both have asked a federal judge in New York to decide whether the agency’s 2020 lawsuit against the cryptocurrency company should proceed. The SEC alleged Ripple offering of its XRP cryptocurrency constitutes the illegal offering of an unregistered security. Ripple maintains otherwise. The two parties agreed that their arguments are sufficiently articulated in written pleadings to avoid the necessity of a trial. The judge in the case had not, as of the evening of June 18, indicated when she will require a trial.

Do Kwon, the driving force behind the Luna cryptocoin, may be on the run, the street.com reported Sunday (Sept. 18). The news organization stated that South Korean authorities say they can’t find Kwon but Kwon has Tweeted that he’s not eluding authorities. Luna was one of the bigger cryptocurrency collapses.