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HomeLaw & PoliticsBankrupt crypto lender Celsius gets approval to sell mined Bitcoin

Bankrupt crypto lender Celsius gets approval to sell mined Bitcoin

A U.S. judge has given the green light to the bankrupt crypto lender Celsius Network to sell mined bitcoin (BTC). During a bankruptcy hearing on August 16, Celsius attorney Josh Sussberg disclosed the receipt of cash-injection offers, but he did not specify the size of the offers. Sussberg claims that for Celsius, acting promptly on this is “mission crucial.” Companies reorganising in U.S. bankruptcy courts typically look for funding to maintain their operations.

However, until Celsius provides more details about the assets it wishes to sell, it prevents it from selling equity or debt holdings in other cryptocurrency businesses.

Since it filed for Chapter 11 bankruptcy on July 13 in response to its decision to freeze customer accounts, Celsius’s spending has been closely examined in bankruptcy court. Its business model, like that of other crypto lenders, came under scrutiny after a sharp selloff in the crypto market in May, brought on by the demise of notable tokens terraUSD and luna.

Celsius mined bitcoin before declaring bankruptcy in order to help pay for its operations. With Judge Martin Glenn’s approval on August 16, that is now possible. According to a document submitted prior to the hearing, Celsius mined bitcoin worth $8.7 million in July. However, the company’s operational and capital expenses were higher.

According to Coinmarketcap, the Bitcoin price today is $23,811.73. In the last 24 hours, Bitcoin has decreased by 0.90%.

Read more at Cryptoshrypto:

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