The crypto lending firm intends to get the liquidity and support its operations with the funds from the sell-off. 2427 Total views 91 Total shares Listen to article 0:00 News Celsius Networks, a crypto lending company that had frozen withdrawals in June and has been proceeding through Chapter 11 bankruptcy since July, asked the United States Bankruptcy Court for the Southern District of New York for permission to sell its stablecoin holdings. This should allow the company to generate liquidity to help fund the Debtors operations.
A notice was filed by the Celsius legal team from Kirkland & Ellis law firm on Thursday. A hearing where the court would accept or decline the motion will take place on Oct. 6.
According to the filing, the company currently holds an equivalent amount of $23 million in on different stablecoins. If sold, these funds would go to support Celsius current operations. Citing section 363 of the Bankruptcy Code, the filing notes: Section 363 of the Bankruptcy Code is designed to strike a balance between allowing a business to continue its daily operations without excessive court or creditor oversight and protecting secured creditors and others from dissipation of the estates assets.
Celsius recently filed a motion, pledging to partially return money to customers. However, it would only apply to Custody and Withold Accounts and for custody assets worth $7,575 or less in value. The move drew criticism from some industry leaders, as the limitation means that only $50 million out of $210 million could be released.
Related: Court filings reveal Celsius will run out of money by October
The pressure on Celsius continues to rise as on Aug. 31, an ad hoc group of 64 custodial account holders filed a complaint to recover their assets. The plaintiffs noted that Celsius has not honored any withdrawals from any programs, including custody services.
According to the complaint, that contradicts the plain language of the debtors terms of use, as they provide that title to custody assets always remains with the user. #Bitcoin #Business #Cryptocurrency Exchange #Lending #Court Related News How to get a job in the Metaverse and Web3 The metaverse is the future but are current platforms failing users? Crypto for foreign trade: What do we know about Irans new strategy Singapore MAS examines crypto firms ahead of new regulations: Report Celsius bankruptcy proceedings show complexities amid declining hope of recovery Mt. Gox trustee releases repayment procedures update
