celsius network
Crypto winter

Bankrupt crypto platform Celsius wants to sell its stablecoins

After recently being granted permission to sell the Bitcoin (BTC) it mines, bankrupt crypto platform Celsius Network now wants to sell its stablecoins in order to pay its operating expenses. Indeed, Celsius released a report on Wednesday, revealing that it has more than $2 billion in liabilities in several cryptocurrencies, with its stablecoin holdings amounting to about $23 million, held in 11 different stablecoins.

Celsius, Authorize the Sale of Stablecoin Assets

Celsius ongoing bankruptcy continues, and a recently leaked handheld meeting recording indicates that the company wants to attempt a recovery plan. However, it appears that the Unsecured Creditors Committee (UCC) related to the Celsius bankruptcy does not seem to support the idea.

In the leaked audio, it says that Celsius wants to develop a new business plan and pay off its debts via the company’s vertical efforts and recently revised products. In addition to the alleged recovery plan, court filings show that a bankruptcy judge in the Southern District of New York has appointed a third-party examiner to review Celsius’ finances .

In a petition filed with the court investigating the company’s bankruptcy proceedings, Celsius says it holds $23 million in stablecoins spread across its U.S., U.K. and European subsidiaries.

Funds that would therefore not be intended to repay the many creditors of the bankrupt crypto lending platform, it remains to be seen whether Judge Martin Glenn in charge of the case will agree to Celsius’ request.

As a reminder, Celsius Network would have debts that revolve around 3 billion dollars, a catastrophic situation for the thousands of users of the platform who will probably never see their money blocked on their account by the company now fallen from trust.

In restructuring, the company is looking for funds to continue to operate and pay the salaries of the people still working for the company.

The court case for Celsius’ attempt to obtain the $23 million in stable coins is intended to generate cash. A court hearing to “Authorize the Sale of Stablecoin Assets” is scheduled for October 6.

Join the discussion

  1. Pingback: Celsius boss Alex Mashinsky quits amid bankruptcy proceedings - Trending Crypto News

Leave a Reply

Your email address will not be published.

back to top