Celsius Network crypto lending platform has got permission from He oversees her bankruptcy case to sell all of her bitcoins. The company has overcome opposition from unsecured creditors, helping the court to rule in favor of the company over its crypto assets, even though the company is not allowed to sell any of its stock or other assets.
Celsius will decouple from all of its bitcoins
Celsius has been feeling hot lately. Things started badly a few months ago when the company suspended withdrawals indefinitely as a way to deal with the unpredictability of the crypto market at the time. Bitcoin and many other cryptocurrencies were falling into deep dark holes, and it was not clear what would happen.
The pain didn’t stop there. Celsius later announced that it would file for bankruptcy as a way to protect itself from creditors and customers who were willing to go to great lengths to get their money back. While the company is not going out of business or anything like that yet, the bankruptcy proceedings will allow the company to pursue other ways to maintain its operations without losing its money.
Chara Cornell – the US trustee who represents the interests of the Department of Justice – was not happy with the fact that the court was ruling in Celsius’ favour, as the company allegedly lacks clarity. Cornell said in a recent interview:
What really matters to us in this case is transparency, and we don’t have that kind of visibility into mining operations. For example, we do not have an understanding at this point of the debtor’s utility-related costs to operate these mining rigs.
Ross Coastnet of the law firm Kirkland & Ellis representing Celsius said the ruling was strong that would eventually allow Celsius to get back on its feet. He said:
We’re getting business. We still have a lot of capex, but there is a plan that once the capex is done and all the mining rigs are up and running, the company will be very backlogged.
The company needs money
However, his counterpart Josh Susberg of the same company said the move was only a temporary allowance for the percentage, and that more funding would be necessary if Celsius were to operate after October of this year. Sosberg said:
We are very focused on making sure we have liquidity and I am pleased to report that we have several offers pending with many more likely to emerge. This will be a job to work with [unsecured creditors] Committee and coordinate with them to find out the best way to finance the solution of this issue.
At the time of writing, the company holds just under $340,000 in BTC at the current price of the asset.
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