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Amid its bankruptcy proceedings, crypto lender Celsius Network LLC has sought court approval to sell and/or exchange its stablecoin holdings for U.S. dollars in order to generate liquidity and help fund its operations.
See related article: Goldman Sachs said to raise US$2B for Celsius assets: report
Fast facts
- “Celsius currently owns eleven different forms of stablecoin totaling approximately US$23 million,” according to a new court filing. The stablecoin assets are held by debtor Celsius Network Limited (UK), debtor Celsius Network LLC (US) and non-debtor Celsius Network EU UAB (LT).
- A hearing is scheduled for Oct. 6 to discuss the stablecoin sale, the court filing said.
- The “debtors” continue “to own stablecoins that should be monetized to fund their operations in these Chapter 11 cases given their market stability compared to other types of cryptocurrencies,” the court filing said.
- Celsius, including its crypto mining unit, filed for Chapter 11 bankruptcy in the Southern District of New York earlier this year.
- Celsius was created in 2017 as a crypto lending platform where users could transfer their crypto assets, earn rewards and take out loans using those transferred crypto assets as collateral.
- Celsius is one of the major players in the contagion that struck the crypto industry, while others like Singapore-based crypto lender Hodlnaut froze withdrawals and exchanges like CoinFlex and Coinbase reduced headcount.
- Singapore-based crypto lending and trading platform Vauld has reduced staff while seeking court protection from potential lawsuits, while crypto Hedge fund Three Arrows Capital was ordered to liquidate.
See related article: Where will DeFi be after crypto winter ends?