Embattled Crypto Lender Celsius Seeking Permission To Sell Stablecoin Holdings in New Court Request
Embattled crypto lender Celsius is seeking permission from the U.S. Bankruptcy Court to sell off its stablecoins.
As the future of the company remains unclear, it is asking the bankruptcy court for permission to sell the stablecoins in its possession as a means of generating liquidity, according to recent court filings.
“The debtors, in an exercise of their reasonable business judgment, believe that the sale of their stablecoin consistent with past practice and in the ordinary course of business is an efficient way to generate liquidity to help fund the debtors’ operations.”
The company has about 11 different types of stablecoins, valued at about $23 million, in its possession, according to the court filings. A hearing on the request is scheduled for Oct. 6.
Court documents reveal the company has about 300,000 active users with accounts greater than $100, more than 1.7 million registered users and clients in more than 100 countries. Celsius was created in 2017 as a platform for clients to trade crypto assets, earn rewards and take out loans using digital assets as collateral.
The firm originally filed for bankruptcy in July after its native asset CEL collapsed in mid-June.
The request comes as the CEO of Celsius Network, Alex Mashinsky, is reportedly seeking to revive the company with an “audacious plan.”
Mashinsky presented a plan called “Kelvin” that would transform the company by offering services to store people’s crypto assets on their behalf and charge fees for certain types of transactions.
The company was also granted court approval in August to resume Bitcoin (BTC) mining operations amid the bankruptcy proceedings.
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Author: Daily Hodl Staff
