Celsius Specifies Dates to Auction Its Assets after Bankruptcy
A timeline has been specified by the Celsius Network to auction its assets. The crypto lending platform, which has now become bankrupt, will witness 17th October as the conclusive bid deadline. In this respect, an auction – in the case of its necessity – will be conducted on 20th October. In addition to this, Martin Glenn (the bankruptcy judge presiding over Celsius’ case) will carry out the sale hearing on the 1st of the coming month via Zoomer. This was noted in a filing submitted with the United States Bankruptcy Court for the Southern District of New York.
Celsius to Auction Its Assets on Near Dates
The bankruptcy request was filed by Celsius in July, just a month following the stoppage of customer withdrawals. Along with this, the freeze of many billions’ worth in the USD throughout nearly 1M accounts was also done by the company. The recent documents of the court brought to the front that the liabilities of Celsius were above the value of approximately $6.7B while just $3.9B was the worth of its assets, resulting in a $2.8B gap in the balance sheet.
During the bankruptcy-related proceedings of Celsius, Alex Mashinsky (the CEO and founder of the firm) exited the venue by resigning from his post the previous week. It is reported that approximately $10M was withdrawn by Mashinsky before the firm froze consumer withdrawals and finally declared that it had become bankrupt. A great number of participants are expected to be a part of Celsius’ sale hearing, as mentioned in the court filing.
FTX Actively Endeavors to Get the Property of Celsius
At the moment, it is not known who offers the finest as well as the best bid to purchase the assets of the firm. Sam Bankman-Fried, the CEO of FTX, is reportedly pondering over making a bid to own the assets of Celsius. In the previous week, the U.S.-based branch of FTX witnessed success in winning an auction for buying the assets of Voyager Digital (another bankrupt crypto platform). In its bid, an amount of approximately $1.4B was specified by FTX to buy the assets.
The respective scenario is a consequence of the worst Terra fall. That event is responsible for the loss of up to $60 billion worth of the traders’ assets. As a result of such a huge collapse, that occurred due to the de-pegging of LUNA (Terraform Labs’ native token) from the U.S. dollar, many crypto companies fell to become bankrupt. After that incident, Three Arrows Capital (the crypto firm having a top value in LUNA) also plunged.
A similar impact was experienced by the lending firm Celsius Networks as the platform had lent a big amount to 3AC. As mentioned earlier, the place of FTX is among the prominent platforms doing a lot of effort to have the property of Celsius. During the lengthy episode of crypto meltdown – that has prolonged for nearly 12 months – several opportunities have been availed by FTX to purchase some of the troubled trade gamers.
