Celsius Announces Dates for Asset Auction after Bankruptcy

UTC by Kofi Ansah · 2 min read
Celsius Announces Dates for Asset Auction after Bankruptcy

Recent court records revealed that Celsius has a $2.8 billion balance sheet hole as a result of its liabilities exceeding its assets by more than $6.7 billion.

Crypto lender Celsius Network has set a date for the auction of its assets after the troubled firm filed for bankruptcy. According to the filing with the US Bankruptcy Court for the Southern District of New York dated Monday, the firm has a final bid deadline scheduled for October 17 at 4 p.m. Eastern Time.

Celsius will also hold an auction on October 20 at 10 a.m. Eastern Time, if necessary. The filing also revealed that a sale hearing will be held on November 1 at 11 a.m. ET before Chief U.S. Bankruptcy Judge Martin Glenn via Zoomer.

Celsius filed for bankruptcy back in July, just a month after halting client withdrawals and locking up billions of dollars across more than a million accounts.

Recent court records revealed that Celsius has a $2.8 billion balance sheet hole as a result of its liabilities exceeding its assets by more than $6.7 billion.

Alex Mashinsky, founder and CEO of Celsius who reportedly withdrew $10 million before the company halted client withdrawals, resigned last week amidst the bankruptcy proceedings.

Several participants are expected to attend the sale hearing of Celsius, per Monday’s court filing. According to reports, crypto exchange FTX has emerged as one of the forerunners in the bid to acquire Celsius’s assets. 

Sam Bankman-Fried’s company is taking advantage of the strong crypto meltdown this year and has been acquiring some of the troubled industry players. 

FTX’s US unit, won an auction for bankrupt crypto firm Voyager Digital’s assets, last week, bidding about $1.4 billion for the firm. 

The Terra ecosystem collapse which caused more than $60 billion in investor value to be lost, kickstarted Celsius’s woes. 

The collapse contributed to the downfall of hedge fund Three Arrows Capital (3AC), which had sizable holdings in LUNA. Celsius Networks, which was a large-scale lender to 3AC, subsequently saw the cascading effect of the same.

In another development, Celsius’s application to resume withdrawals for a group of customers and liquidate its stablecoin assets was rejected by the US Department of Justice (DoJ). 

According to the DoJ, Celsius’s finances have been unclear, thus this action shouldn’t be considered until Celsius has been appointed a qualified independent examiner.

Business News, Cryptocurrency news, News
Kofi Ansah
Author Kofi Ansah

Crypto fanatic, writer and researcher. Thinks that Blockchain is second to a digital camera on the list of greatest inventions.

WhaleMaker
Related Articles
WhaleMaker