Tuesday, December 6, 2022
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Celsius files for judiciary clearance to sell its stablecoin assets worth of $23 million

Crypto lending platform Celsius, on September 15 filed a motion seeking permission from the judiciary to sell its stablecoin assets worth $23 million in exchange for US dollars.

Eleven distinct forms of stablecoin, with a total worth of almost $23 million, are owned by three entities of Celsius. The assets were effectively used to support the company’s cryptocurrency lending services.

To increase its cash and finance its business activities, Celsius is planning to sell its stablecoins. Due to the stability of the stablecoin market, the cryptocurrency lender chose to sell its stablecoin assets instead of other cryptocurrencies in its custody.

On October 6, the bankruptcy court will consider the filing.

Celsius seeks an independent investigator from the court

Celsius to sell its  stablecoin
Celsius to sell its stablecoin

On August 18, the United Trustee’s Office submitted a proposal to appoint an independent investigator to confirm Celsius’s business claims.

However, the cryptocurrency lending institution quickly lost credibility, as creditors claimed that Celsius and its CEO, Alex Mashinsky, changed false information regarding the firm’s cash before it had filed for bankruptcy.

On September 14, bankruptcy judge Martin Gleen approved the hiring of an unbiased investigator to look into problems with Celsius cryptocurrency holdings, tax payments, and adjustments to account services.

Celsius plans to bounce back with the project “Kelvin”

With “Project Kelvin,” Celsius hopes to emerge from its struggling state much stronger.

As soon as clients have been fully repaid, Mashinsky said that Celsius will make its comeback. The sole purpose of the new custody service will be to store cryptocurrency. Customers will need to pay cash to use the custody service.

The Unsecured Creditors Committee did not encourage the goals of “Project Kelvin.” The committee also added that the firm should concentrate on ensuring the ongoing reorganisation process is open as well as advantageous to all account holders.

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