Celsius Wants Agreed To Sell Stablecoins To Maintain Operation
Amid its bankruptcy proceedings, crypto lender Celsius Network LLC has sought court approval to sell and/or exchange its stablecoin holdings for U.S. dollars in order to generate liquidity and help fund its operations.
In the latest developments in bankruptcy proceedings, Celsius management wants court permission to sell the company’s assets including stablecoins worth approximately $23 million.
“Celsius currently owns eleven different forms of stablecoin totaling approximately $23 million,”According to a new court filing
The stablecoin assets are held by debtor Celsius Network Limited (UK), debtor Celsius Network LLC (US) and non-debtor Celsius Network EU UAB (LT). A curious detail is that although the US and UK branches are listed as debtors in the documents, the EU one – Celsius Network EU UAB – is described as a non-debtor.
Although the sale of the full amount is still to be debated at the hearing, the court has granted this lending platform the right to continue selling stablecoins that are not Custody and Withhold customer assets.
“Pursuant to section 363(c)(1) of the Bankruptcy Code, the Debtors are authorized, but not directed, to sell and/or exchange any stablecoin(…) on a post-petition basis consistent with prepetition practices and in the ordinary course of business without further notice and hearing; provided that the Debtors shall not sell any stablecoins that constitute Custody Assets and/or Withhold Assets pending further order of the Court.”
Unfortunately, about 80% of this platform’s users do not have Custody or Withhold accounts – which means that stablecoins deposited by them are now subject to sale by the team.
A hearing is scheduled for October 6 to discuss the stablecoin sale, the court filing said.
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