Is Celsius Trying to Sell Its Stablecoin Holdings?
Celsius Network is a crypto lending platform that is at present going through the proceedings of a Chapter 11-based bankruptcy case. It has requested the court to provide approval for selling the stablecoin holdings of the platform. This will permit Celsius to create liquidity as well as be assisted in funding the activities thereof, as per the unique court filings. The crypto lending firm presently has more than eleven stablecoin forms under its possession.
Celsius Requests Bankruptcy Court to Let it Sell the Stablecoin Holdings
The cumulative amount of the respective stablecoin holdings is nearly twenty-three million dollars, as per the disclosures. In July, Celsius submitted a filing for bankruptcy and now it is attending the proceedings in this respect in front of the United States Bankruptcy Court for the Southern District of New York. The same court is additionally presiding over the bankruptcy case of another well-known crypto company named Three Arrows Capital.
The venue hopes that the approval given to the motion, filed by Celsius, by Martin Glenn (the Chief judge of the United States for bankruptcy). In that case, the sale-related proceedings will in turn result in generating revenue to meet the expenses of the operations carried out by Celsius Network. The profits gained from the platform’s stablecoin sale will take into account the debtors’ estate-related property. Even then, a distinct continuous procedure will comprise the strategy to provide the funds of the debtors back to them.
Nonetheless, the debtors are continuously owning stablecoins for the potential monetization thereof for funding the proceedings of the Chapter 11-based cases. A reason behind this is the stability of these assets across the market in comparison with the rest of the crypto types, as noted in the filing. The official committee of the platform for unsecured creditors carried out a contract with the Trustee’s Office of the United States in September this year.
Next Hearing to Occur on 6th October
The respective contract aims to hire an autonomous examiner, keeping in view that they took several moves to restrict the timespan which is to be consumed as well as the funding to be spent on the examiner as well as the investigation of the case. That deal was approved by the judge on Wednesday. On 6th October, a hearing is expected to take place in New York for discussion on the proposed sale of stablecoins.
