What is the latest information about the events that are shaking the crypto sector?

The founder of Tron (TRX), Justin Sun.says he is ready to get his fingers in the purse strings to make buy-in trades when a new turbulent week begins in the crypto market, with new developments for Celsius (CEL) and CoinFlex.

Justin Sun. Source: video recording, Youtube, Tron

Justin Sun ready to help struggling crypto companies

In a tweet, Sun said writing that Tron “was always ready to assist”. He further told The Block that “many” companies have already reached out to both Tron and Sun for financial assistance, as many companies in the industry are struggling financially.

Sun added that he was ready to spend up to $ 5 billion and that Tron was hiring an investment bank to advise him on potential deals.

The CEO of Tron reportedly explained:

“Our interest is in platforms with a large user base – whether they are centralized or decentralized (DeFi) platforms.”

Sun concluded that “the worst” of the “downsizing process” was “over,” but said the industry needed to “clean up and move on.”

Celsius is still fighting

Crypto Lender Celsius reportedly used $ 534 million worth of client funds in cryptocurrencies to execute “high-risk leveraged trading strategies.”

These claims were made in a document on the Celsius network by the specialist in blockchain analysis Arkham Intelligence. The company said Celsius carried out its “strategies” using a third-party asset manager – a “notorious Twitter personality whose Ethereum wallet address is 0xB1. ”

However, these strategies resulted in “apparent losses of $ 350 million when the asset manager returned capital” – a figure that fell further after the market crisis, Arkham analysts added.

Arkham said Celsius had “potential shortcomings in risk management and corporate fund accounting,” as evidenced by its partnership with 0xB1.

The research firm claimed that from August 2020 to April 2021, Celsius delivered the aforementioned $ 534 million in tokens across 260 transactions.

0xB1, the company added, then continued to invest these funds in a number of DeFi-related projects.

The Wall Street Journal meanwhile reported that Celsius had hired “new lawyers for restructuring advice”, including those from the world’s largest law firm measured by turnover – Kirkland and Ellis. The latter is expected to help Celsius assess possible options, including filing for bankruptcy, to replace the company’s former senior restructuring adviser, say people with knowledge of the case.

CoinFlex and Hong Kong Courts

The CoinFlex crypto platform, founded in 2019 by Mark Lamb and Sudhu Arumugamis ready to fight a legal battle with an anonymous client who many believe has identified him as Roger Wormone of the leading promoters of Bitcoin Cash (BCH).

In a blog post, the stock exchange – which suspended withdrawals in June – wrote that it had initiated arbitration proceedings in Hong Kong to try to recover $ 84 million in losses from the client.

Lamb previously claimed that Ver broke a $ 47 million USDC loan deal. Lamb claimed that Ver is contractually obligated to “guarantee any negative justice”, while Roger Ver denied these allegations on Twitter.

In its last post, CoinFLEX wrote that it would take about a year to obtain a judgment that would allow it to claim the anonymous client’s assets.

Fellowship wrote:

“The person initially asked us to liquidate his account, but then proceeded to postpone a significant delay, claiming that he wanted to send significant funds to the stock exchange to physically receive the futures positions.”

But, the stock exchange adds, it is now “clear to us” that the client was in fact “trying to stop and hope for a recovery in the market that never came to anything.”

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