Celsius files for permission to sell its stablecoin holdings
The Southern District of New York of the United States Bankruptcy Court received the request.
The proceeds of the sale would mostly be used to support Celsius Network's operations if this move were granted by the chief bankruptcy judge of the United States, Judge Martin Glenn, who is presiding over the proceedings.
Feyisayo Ajayi
1 min read
In an effort to acquire money for its operations, cryptocurrency lending company Celsius Network, which is presently involved in Chapter 11 bankruptcy proceedings, has sought court permission to sell its stablecoin assets in order to generate liquidity to support its operations.
The Southern District of New York of the United States Bankruptcy Court received the request.
The proceeds of the sale would mostly be used to support Celsius Network’s operations if this move were granted by the chief bankruptcy judge of the United States, Judge Martin Glenn, who is presiding over the proceedings.
The Debtors’ estate owns the money gained from the sale of the stablecoins, but paying them back is a different and continuous process.
But considering that stablecoins have a more stable market than other cryptocurrencies, the lawsuit states that the debtors should sell them to pay for their operations in these Chapter 11 cases.
In July, New York-based Celsius, based in New Jersey, filed for bankruptcy after it stopped accepting withdrawals due to “extreme” market conditions. Celsius presently has 11 distinct stablecoins, worth a total of around $23 million.
In July, New York-based Celsius, based in New Jersey, filed for bankruptcy after it stopped accepting withdrawals due to “extreme” market conditions. Celsius presently has 11 distinct stablecoins, worth a total of around $23 million.
