Celsius seeks court approval to sell $23M worth of stablecoin assets News ▸ US ▸ Celsius ▸ Bankruptcy
Celsius seeks court approval to sell $23M worth of stablecoin assets
Celsius is looking to sell the stablecoins to generate more liquidity to fund its business operations.
1 min read
Updated: Sep. 16, 2022 at 12:43 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Celsius Network is looking to sell $23 million worth of its stablecoin assets for U.S. dollars, according to a Sept. 15 filing.
Three entities belonging to Celsius hold eleven different forms of stablecoins, which totaled approximately $23 million. The holdings were actively used to facilitate its crypto lending services.
Celsius is looking to sell the stablecoins so as to generate more liquidity to fund its business operations. The crypto lender opted to sell stablecoins rather than other cryptocurrencies in its custody due to the former’s market stability
The bankruptcy court will deliberate on the filing on Oct. 6.
Independent examiner to come onboard
The United Trustee’s Office filed a motion on Aug. 18 seeking the appointment of an independent examiner to verify Celsius’s business claims.
The crypto lender was fast losing trust as creditors complained that Celsius and its CEO Alex Mashinsky altered misleading information about the company’s liquidity before it filed for bankruptcy.
Bankruptcy Judge Martin Gleen approved the appointment of an independent examiner to look into issues relating to Celsius crypto holdings, tax payment, and changes in account offerings on Sept. 14.
The Comeback plan with “Kelvin”
Celsius is looking to come out of its struggling state much stronger with “Project Kelvin.”
Mashinsky explained that as soon as customers’ are duly refunded, Celsius will kickstart its comeback. The new custody offering will focus only on storing cryptocurrencies. Customers will be required to pay a fee for the custody service.
The Committee of Unsecured Creditors did not support the ambition behind “Project Kelvin.” It added that the company should focus on ensuring the ongoing restructuring process is transparent and benefits all account holders.
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Christian Nwobodo
Christian is a crypto-curious nerd who loves to investigate how protocols work under the hood. Christian is interested in DeFi protocol research, token economics, and on-chain analytics.
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Celsius Network
Celsius Network is a bankrupt cryptocurrency lending company that was founded in 2017 and headquartered in Hoboken, New Jersey.
Alex Mashinsky, born in 1965 in the Soviet Union to a Jewish family, moved to Israel in the 1970s.