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Crypto Lender Files for Access to $23M in Stablecoins, Celsius Bankruptcy Case

18-Sep-2022 By: Shailja Joshi
Crypto Lender Files

The bankrupt cryptocurrency lender Celsius's attempt to restart the business despite running into financial difficulties is revealed in a recently released recording.

After the leak, a bankruptcy court in the Southern District of New York named a third party examiner to go at the business' finances. In addition, a court document filed on Thursday claims that Celsius is trying to sell a $23 million stockpile of stablecoins.

The Celsius bankruptcy is still active

Celsius Wants Access to Stablecoin Liquidity, Examiner Appointed to Scan Financials, and Looks to Revival Plan. The Celsius bankruptcy is still active, and a recently exposed all-hands meeting recording suggests that the company wants to try to implement a revival strategy. The Committee of Unsecured Creditors (UCC) overseeing the Celsius bankruptcy doesn't appear to support the proposal, though.

According to the tape that was leaked, Celsius intends to create a new business strategy and use its newly redesigned vertical initiatives and goods to pay off its debts. A Southern District of New York bankruptcy judge has assigned a third-party examiner to review Celsius' financial records in addition to the purported resurrection plan, according to court documents.

Attorneys for the UCC and the creditors asked the court to appoint an independent examiner. Additionally, petitions for a trustee were presented, and on September 14 the judge authorised a court order for an examiner.

Additionally, the UCC has opened its own investigation into hundreds of documents connected to Celsius. Celsius is requesting access to the $23 million in stablecoins the corporation currently has in a court document filed on September 15.

Although Celsius users who held stablecoins on the platform also requested their stablecoins should be "treated differently," the news comes after Celsius was permitted to sell the mined bitcoin (BTC) it possessed.

In order to create liquidity, Celsius filed a lawsuit to try and get the $23 million in stablecoins. On October 6, there will be a court hearing for "Permitting the Sale of Stablecoin" assets.

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