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On Monday, August 15th, 2022, beleaguered crypto lender firm, Celsius Network, affirmed the company facing cash crunch. Moreover, it mentioned that they were receiving few proposals offering them to help with cash issues. A US judge approved the bankrupto crypto lender to sell their mined bitcoin (BTC) in order to generate cash.
The very next day, during the bankruptcy hearing, Josh Sussberg, Celsius’ lawyer, showcased the list of offers to the company with cash proposals. However, they did not disclose any information regarding the offered amount. Sussberg cited making any move hastily in these situations as a critical mission for the firm.
Celsius is in heavy need of liquidity at this point of time. On Monday, court filing consisted of the company’s financial projections that showcased that its cash reserve will be emptied in a couple of months, specifically, by October. Company owes its depositors 2.8 billion USD more than it has in its crypto funds.
In the United States, it’s common for the bankrupt companies to report their restructuring within the US court in order to receive finances that could help with their operations to keep going. Celsius also reported to sell its mined bitcoin before bankruptcy filing. Previous selling of BTC also came in the wake of generating funds for operations.
With approval from the bankruptcy case’s Judge Martin Glenn, Celsius will be eligible to keep up with its plan ahead. According to the document presented to the court before hearing, in July, Celisus managed to mine bitcoin (BTC) worth 8.7 million USD.
Crypto lender was among the firms across the crypto space which experienced the worst hits of the crypto market downturn after the Terra (LUNA) network’s downfall. Celsius had to shut down their withdrawal operations in the beginning, but later on the company became unable to continue. Eventually, in July, the crypto lending firm filed for the Chapter 11 Bankruptcy.
Saurav Bhattacharjee is in charge of the Broadcast development team of The Coin Republic.
He has been covering the Metaverse and NFT niche for the past 2 years.
With stellar interviews on his portfolio like Nicehash, Paxful, WallstreetWolvesNFT, Bitholla, Totemfi, EOS.io etc. Saurav has spearheaded the NFT SUPERSTARS AWARD and successfully hosted the first award in 2021.
