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- Celsius Network is seeking permission from New York to sell its Stablecoin holdings.
Celsius Network is a Crypto lending firm that filed bankruptcy under Chapter 11 in July 2022. It has now asked the court to grant permission to sell its stablecoin holding to generate liquidity to help fund its operations.
Earlier, Celsius Network filed its bankruptcy in U.S Bankruptcy Court for the Southern District of New York. This is the same court handling the Three Arrows Capital bankruptcy case.
If Judge Martin Glenn, the Chief of U.S bankruptcy Judge, granted the permission to sell stablecoin holding, it would become easy for Celsius to pay back its value customers their remaining amount.
The filing also mentions, “The Debtors, however, continue to own stablecoins that should be monetized to fund their operations in these Chapter 11 cases given their market stability compared to other types of cryptocurrencies.”
Chapter 11 Bankruptcy, also called Reorganisation Bankruptcy, follows its process. It is a complex yet effective procedure. This bankruptcy process lets the company stay and business and indulges in financial restructuring.
The official committee of unsecured creditors of Celsius signed a deal with the U.S Trustee’s office at the beginning of September to appoint an independent examiner, provided they took certain steps to limit the amount of time and funds the examiners would take. Celsius Network agreed to join the examiner, and the judge sinned off the deal on Wednesday.
A hearing on selling stablecoins will occur in New York on October 6, 2022.
On September 14, 2022, TheCoinRepublic reported that Celsius Network LLC is thinking of reorganising the firm as a crypto custody business. Such efforts came amidst the ongoing bankruptcy proceedings in court. It’s noteworthy that the lending firm is among the firms that received the worst hit of the recent crypto winter.
In a company meeting in September, CEO Alex Mashinsky and an executive at the firm Oren Blonstein noted the company’s plan to expand into the custody business. As it turns out, the custodian services of Celsius would be called “Kelvin,” and the platform would be charging for using the services.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
