Connect with us

Published

on

Loading… Loading…

Digital investment brokerage Webull Corporation faced significant obstacles in its quest to go public, largely attributed to its cryptocurrency offerings, as disclosed by the companys U.S. CEO on Wednesday.

The online brokerage, aiming for a U.S. listing through a merger with special purpose acquisition company (SPAC) SK Growth Opportunities Corp. SKGR , has seen its journey marked by regulatory challenges and strategic shifts, particularly around its crypto operations.

The proposed merger, valuing the combined entity at approximately $7.3 billion, is set to elevate Webull onto the Nasdaq, contingent upon approval from shareholders and regulators.

This development followed several thwarted attempts at an initial public offering, with Anthony Denier, Webulls U.S. CEO, citing various impediments, including the platforms exposure to cryptocurrency, as significant obstacles.

The SEC has not been friendly, which is widely known, Denier remarked in an interview with Bloomberg News.Webull Steers Away From Crypto To Secure Nasdaq Listing

Founded by Wang Anquan, an alumnus of Alibaba Group Holding Ltd. BABA and Xiaomi Corp., Webull ventured into crypto trading in 2020, aiming to compete with platforms like Robinhood Markets Inc. HOOD .

However, the regulatory landscape concerning crypto trading prompted Webull to divest its digital asset business and eliminate cryptocurrency trading from its offerings globally by the end of the third quarter, as stated by Denier. This decision underscored the regulatory ambiguities faced by registered broker dealers in the crypto space, leading to a cautious retreat from these offerings.

Despite these challenges, Webull maintained crypto- and forex-related information on its website, providing market data and educational content for informational purposes only, without offering actual trading in these products, as specified by the company.

Webull has a robust 20 million registered users across 15 regions worldwide and manages $370 billion in equity notional volumes. Recently, the broker announced a partnership with the NBA's Brooklyn Nets and the WNBA's New York Liberty as the official basketball jersey patch partner.

Now Read: Webull To Go Public With SPAC Merger: What Investors Need To KnowLoading… Loading…

Continue Reading

Skydance boss to chop Paramount’s three-headed CEO structure after merger: report

Published

on

By

Paramount’s three-headed leadership structure will reportedly get shelved once the $8 billion merger with Skydance Media goes through — with two of the co-CEOs likely getting pushed out.

David Ellison, the current Skydance boss who will run the combined company as chairman and CEO, is planning a massive shakeup that could involve combining all of Paramount’s television assets, including CBS and MTV, into one unit, according to Bloomberg News.

Currently, the television properties are jointly run by co-CEOs Chris McCarthy and George Cheeks.

Cheeks, who is said to have a good relationship with Ellison’s deputy Jeff Shell, is expected to stay at the company, but McCarthy’s future is up in the air, Bloomberg reported.

Brian Robbins, the honcho in charge of Paramount Pictures and Nickelodeon, is the third member of the troika.

He is expected to depart the new company around the time the merger is consummated — which can happen as early as March — though people familiar with the matter told Bloomberg that no final decision on Robbins has been made.

Ellison — the son of billionaire Oracle co-founder Larry Ellison — has collaborated extensively with Robbins in recent years.

However, Ellison is said to be considering installing Dana Goldberg, Skydance’s head of production, as head of Paramount’s film studio, according to Bloomberg News.

The Post has sought comment from Paramount Global and Skydance.

Skydance helped finance most of Paramount’s blockbuster films over the last decade, including “Top Gun: Maverick” and the latest “Mission: Impossible” films.

In preparation for the close of the merger, Ellison and his top lieutenants have been meeting Paramount personnel to get an idea of how the company has been operating, according to Bloomberg.

In September, the debt-saddled media giant kicked off a second round of layoffs in its previously announced plans to cut 2,000 jobs.

Employees were told by Ellison that no decision has been made about any additional layoffs once the merger is finalized, Bloomberg News reported.

The consolidation of the television assets is a necessity for Ellison given the fact that viewers are abandoning linear broadcasting in droves.

Paramount’s film studio is also not expected to turn a profit this year, according to analysts.

McCarthy, Cheeks and Robbins have been running Paramount since April 29 following the ouster of CEO, Bob Bakish.

The executive’s relationship with Shari Redstone, the controlling shareholder of Paramount Global parent company National Amusements, reportedly soured after Bakish opposed the Skydance merger.

Redstone holds a 20% stake in NAI through two trusts in her name and is in line to receive about $350 million from its sale, according to Bloomberg.  

Aside from buying up the Redstone family’s entire 77% NAI stake for $2.4 billion, Skydance will pay $15 a share for as much as $4.3 billion of the common shares.

Paramount stock closed at $10.92 on Tuesday.

With Post Wires

Continue Reading

Crypto mogul Alex Mashinsky pleads guilty after Celsius implosion

Published

on

By

Alex Mashinsky, the founder and former CEO of cryptocurrency lender Celsius Network, pleaded guilty on Tuesday to two counts of fraud.

Mashinsky, 59, was indicted on July 13, 2023, on seven counts of fraud, conspiracy and market manipulation charges. Federal prosecutors in Manhattan said he misled customers of Celsius to persuade them to invest, and artificially inflated the value of his company’s proprietary crypto token. He pleaded not guilty later that day.

US District Judge John Koeltl in November denied a motion by Mashinsky to dismiss two criminal counts ahead of his trial, which had been slated for Jan. 28.

On Tuesday, during a hearing before Koeltl, Mashinsky said he agreed to plead guilty to two out of the seven counts he was initially charged with: commodities fraud, and a fraudulent scheme to manipulate the price of CEL, Celsius in-house token.

In court, Mashinsky admitted to giving Celsius customers false comfort by giving an interview in 2021 in which he said Celsius had received approval from regulators for its Earn program, which it had not.

He said he also failed to disclose that he had been selling his holdings of CEL, the platforms in-house token.

I know what I did was wrong, and I want to try to do whatever I can to make it right, Mashinsky said.

As part of his plea deal with prosecutors, Mashinsky agreed not to appeal any sentence of 30 years or less – the maximum he faces for the two counts. Koeltl is set to sentence him on April 8, 2025.

Federal prosecutors in Manhattan have said Mashinsky also personally reaped approximately $42 million in proceeds from selling his holdings of the Cel token.

“Mashinsky made tens of millions of dollars selling his own CEL at artificially high prices, while his customers were left holding the bag when the company went bankrupt,” Damian Williams, the U.S. Attorney in Manhattan, said in a statement on Tuesday.

Before pleading guilty, Mashinsky had been scheduled to go on trial on Jan. 28.

“Sometimes, accepting responsibility when and where appropriate is the best way to help everybody move on,” Mashinsky’s defense lawyer Marc Mukasey told reporters after the hearing on Tuesday.

Founded in 2017, Celsius filed for Chapter 11 bankruptcy protection in July 2022 after customers rushed to withdraw deposits as crypto prices fell. Many were initially unable to access their funds. The company exited bankruptcy on Jan. 31, and has pivoted to Bitcoin mining.

Crypto lenders such as Celsius grew rapidly as crypto prices surged during the COVID pandemic. They promised easy loan access and eye-popping interest rates to depositors, then lent out tokens to institutional investors, hoping to profit from the difference.

Subscribe to our daily Business Report newsletter!

Please provide a valid email address.

By clicking above you agree to the Terms of Use and Privacy Policy.

Never miss a story.

Mashinsky was one of several crypto moguls to be charged with fraud after a slump in crypto prices in 2022 caused a number of companies, including now-bankrupt exchange FTX, to collapse.

Prices for digital assets like Bitcoin have since surged, in part due to optimism about President-elect Donald Trump’s expected policies friendly toward cryptocurrency.

Celsius’ former chief revenue officer, Roni Cohen-Pavon, pleaded guilty in September 2023 and agreed to cooperate with prosecutors’ investigation.

FTX’s founder Sam Bankman-Fried was convicted of stealing roughly $8 billion from the exchange’s customers in November 2023 and sentenced in March to 25 years in prison.

Continue Reading

Elon Musk’s SpaceX could be valued at a whopping $350B in sale of insider shares: report

Published

on

By

Elon Musks SpaceX is reportedly weighing a share of insider shares that would value the rocket company at approximately $350 billion, according to a report.

The tender offer in which employees and early investors are allowed to sell shares at a specific time and price would mark a rapid jump in value for SpaceX.

Musks firm was valued at approximately $210 billion after a previous tender offer that closed in June.

The terms of the tender offer are fluid and could change based on interest from participants, Bloomberg reported, citing people familiar with the matter.

SpaceX did not immediately return a request for comment.

If the $350 billion valuation holds, it would establish SpaceX as the worlds most valuable private firm.

SpaceX is the worlds largest satellite company and is the operator of Starlink, a high-speed internet service designed to serve rural and remote regions that lack traditional infrastructure.

Musks firm has also developed the Starship shuttle as part of the billionaires plans to return astronauts to the moon and eventually to Mars.

Musk emerged as a key adviser and donor for President-elect Trump during his 2024 campaign for the White House. Trump notably attended a Starship test launch in Texas last month.

The budding relationship between Trump and Musk is widely seen as a bullish sign for the billionaires businesses, which include SpaceX, Tesla and the artificial intelligence startup xAI.

Trump has tapped Musk and Vivek Ramaswamy to co-lead the so-called Department of Government Efficiency, or DOGE, which is tasked with slashing the federal budget and unnecessary regulations.

Continue Reading

Trending