Celsius
Celsius Files for Approval to Sell Stablecoin Stash to Fund Operations
The resources freed up by this motion would be used to ensure the platform stays afloat.
In the latest development in the ongoing Celsius Chapter 11 bankruptcy case, the beleaguered platform has now sought approval to sell its reserve of stablecoins.
In the request, Celsius leadership stated that the company’s assets include approximately $23 million worth of stablecoins, spread across its US, UK, and EU entities, respectively.
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.
Resources Would Ensure Funding for Celsius’ Operations
The request, however, does not seek to free up funds in order to pay back anxious creditors. Instead, the cash reserves potentially generated by the sale would go towards funding Celsius’ operational costs – which casts doubt over whether the court will see this as appropriate use of the debtors’ dwindling assets.
Judge Martin Glenn, who presides over the case, has already approved a motion filed in August allowing Celsius to mine and sell Bitcoin, despite the fact that the lender warned the court that the activity would not generate profits immediately due to required investments in mining infrastructure.ç
The resources freed up by this motion would be used to ensure the platform stays afloat.
In the latest development in the ongoing Celsius Chapter 11 bankruptcy case, the beleaguered platform has now sought approval to sell its reserve of stablecoins.
In the request, Celsius leadership stated that the company’s assets include approximately $23 million worth of stablecoins, spread across its US, UK, and EU entities, respectively.
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.
Resources Would Ensure Funding for Celsius’ Operations
The request, however, does not seek to free up funds in order to pay back anxious creditors. Instead, the cash reserves potentially generated by the sale would go towards funding Celsius’ operational costs – which casts doubt over whether the court will see this as appropriate use of the debtors’ dwindling assets.
Judge Martin Glenn, who presides over the case, has already approved a motion filed in August allowing Celsius to mine and sell Bitcoin, despite the fact that the lender warned the court that the activity would not generate profits immediately due to required investments in mining infrastructure.
