Judge skirts classifying CEL as security in light of motion citing Ripple

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By BitcoinWiki News

Key Takeaways:

– A bankruptcy judge in the Celsius case did not determine whether the CEL token is a security due to ongoing Ripple litigation.
– Investor Otis Davis requested the court to consider the Ripple/XRP case precedent for creating a separate committee of CEL token holders.
– The motion was denied by Chief U.S. Bankruptcy Judge Martin Glenn.
– The judge clarified that the order does not conclude whether crypto tokens are securities, reserving the right for the SEC and the Committee to challenge token transactions.
– Ripple has been engaged in a legal battle with the SEC since 2020 over the sale of XRP as an unregistered security.
– Judge Analisa Torres ruled that some of Ripple’s sales of XRP did not violate securities laws, but others to institutional investors were considered securities.
– The Ripple case has been referenced in other court cases, such as the one involving Terraform Labs.
– Earlier this year, a court-ordered bankruptcy report revealed controversial strategies used by Celsius involving CEL token transactions.
– Former Celsius CEO Alex Mashinsky was accused of selling CEL tokens while misleading the public about his own holdings.
– This article is for informational purposes only and does not constitute legal or investment advice.


A bankruptcy judge in the US declined to determine whether Celsius’ native token, CEL, is a security in light of the ongoing Ripple Labs case. The judge denied a motion to create a new separate committee of CEL token holders, stating that it was not a finding under federal securities laws. The Securities and Exchange Commission (SEC) has been engaged in a legal battle with Ripple since 2020, alleging that it raised $1.3 billion through the sale of XRP, an unregistered security. In a recent ruling, a judge determined that some of Ripple’s XRP sales did not violate securities laws, but others did. The CEL controversy involves accusations that Celsius sold tokens in private transactions while impacting the trading price. The former CEO, Alex Mashinsky, is also accused of selling CEL tokens while misleading the public about his actions.

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