Celsius Asks Court for Permission to Sell All of Its Stablecoin Holdings

Celsius Asks Court for Permission to Sell All of Its Stablecoin Holdings

Celsius Chapter 11 bankruptcy case continues with another request from the company.

Celsius, a New Jersey-based cryptocurrency lending platform established in 2017, has asked the court’s permission to sell all of its current and future stablecoin holdings.

According to the notice issued to the United States Bankruptcy Court for the Southern District of New York, the company aims to generate liquidity to fund its operations.

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The document notes that Celsius holds around $23 million in 11 different stablecoins distributed among its entities in the United States, United Kingdom, and European Union.

If the request receives a green light from the presiding Judge Martin Glenn, the funds will be used to support Celsius bankruptcy proceedings and various operations.

So far, it seems that there should be no problems with this request, as it doesn’t violate any laws. It is because of the nature of the assets. The inquiry of selling stablecoins does not fall under the scope of laws prohibiting the sale of digital assets due to the risks of “depreciation or appreciation.”

The hearing for Celsius request is set to take place on October 6th.

On August 15th, the company took to Twitter to overview its bankruptcy proceedings. The company highlights that it anticipates to soon begin “the Claim process,” which will allow customers to claim their funds. However, while that awaits, the company plans to allow withdrawals for particular Custody and Withhold accounts.

It is worth noting that, on August 31st, a group of 64 custodial-account owners asked the Bankruptcy Court to renew withdrawals for their custodial accounts. On September 1st, Celsius filed its own motion asking the court to allow customers with less than $7,575 in their Custody or Withhold Accounts to withdraw their funds.

Based on this request, Celsius will be able to return around $50 million out of $270 million held in user accounts.

In other news, Celsius co-founder S. Daniel Lion filed documents to the United States Bankruptcy Court Southern District of New York claiming that his equity stake in the company is “worthless.”

Gile K. - Crypto Analyst

by Gile K. - Crypto Analyst, BitDegree


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