The new court-filed documents state that cryptocurrency lending company Celsius Network, which is presently involved in Chapter 11 bankruptcy proceedings, has requested permission from the court to sell stablecoin assets to generate liquidity. The U.S. Bankruptcy Court for the Southern District of New York, which also heard the bankruptcy case of Three Arrows Capital (3AC), received a bankruptcy filing from Celsius in July.
Sales To Cover Operating Costs
The sale proceedings would primarily cover the crypto lender's operating costs if Martin Glenn, the Chief U.S. bankruptcy judge, grants this move. Stablecoin proceeds are part of the Debtors' estate, but their repayment is a separate process. However, considering that stablecoins have a more stable market than other cryptocurrencies, the lawsuit states that the debtors should sell them to pay for their operations in these Chapter 11 cases.
Celsius Gets Approval For Independent Examiner
A federal judge has granted a request for the U.S. Trustee's office to appoint an independent examiner to look into the financial management of cryptocurrency lender Celsius Network, which resulted in the company filing for bankruptcy earlier this summer. The decision was made on Wednesday by U.S. Bankruptcy Judge Martin Glenn. The proposed stablecoin sale will be reviewed at a hearing on October 6.