Amid its bankruptcy proceedings, crypto lender Celsius Network LLC has sought court approval to sell and/or exchange its stablecoin holdings for US dollars to generate cash and help fund its operations. operations.
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- “Celsius currently owns eleven different forms of stablecoins totaling approximately $23 million,” according to a new court case. 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 October 6 to discuss the sale of stablecoins, 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 relative to other types of cryptocurrencies,” the filing says. court.
- Celsius, including its crypto-mining unit, filed for Chapter 11 bankruptcy in the Southern District of New York earlier this year.
- Celsius was established 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 main contributors to the contagion that has hit the crypto industry, while others like Singapore-based crypto lender Hodlnaut frozen withdrawals and exchanges like CoinFlex and Coinbase have downsized.
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