Please Read Our Disclaimer

Celsius Receives Approval for Selling Mined Bitcoin

Crypto lender Celsius Network received approval from a bankruptcy court judge on August 16th to sell the bitcoin that it had previously mined in order to continue funding its operations.

The company’s attorney spoke out the next day that the crypto lending platform had received offers of cash injections.

However, the lawyer did not disclose who had made the offers and no details were provided about how much funds had been offered.

Celsius Gets Approval

On Wednesday, Judge Martin Glenn in a Southern District of New York signed a court order that was filed by Deanna Anderson, the courtroom deputy.

According to the court order, Celsius has received approval for selling the bitcoin that had been mined previously through their mining operations.

While Celsius Network was primarily recognized for offering crypto lending services, it should be noted that they had also been running a bitcoin mining operation.

Joshua Sussberg, the lawyer of Celsius Network, had submitted a court document explaining that a total of $8.7 million worth of bitcoin had been mined via the company’s operations in the previous month.

According to the document, the sales of bitcoin had happened before the date of the petition on July 13th and the letter further clarified that a total of 58,000 mining rigs had been in use.

Cash injection offers

Celsius’ lawyer had also informed the court that cash injection offers had also been made to the company but did not disclose the name of the interested parties, or the amount of funds they offered.

This news comes after Ripple Labs had expressed an interest in learning about Celsius Network and the assets of the crypto lender.

The statement from Ripple came when it was questioned as to why it wanted to talk about the bankruptcy court filings of the crypto lending firm.

Celsius’ clients

The court filings have also been flooded by a myriad of letters that have been sent to the Southern District Court of New York by clients of Celsius Network.

Carol Becht, one retired customer explained in her letter that her account on the Celsius platform had held 50,000 usd coin (USDC).

She said that she had done some research into how the stablecoin is backed and issued by Centre and so, she could not understand how her assets could have simply evaporated.

According to the Celsius customer, her stablecoin holdings should be treated differently because of the licensed and regulatory nature of Circle Financial and Centre.

She said that unless Celsius Network had falsified information, it did not make sense as to how her stablecoin holdings could have disappeared.

She said that Centre had built safety measures into USDC, so this was not a possibility. Therefore, she believes that USDC should not be treated in the same manner as other crypto holdings on Celsius.

Other customers of the platform have requested the authorities to issue their funds because they are in dire need and some of them have discussed their financial difficulties.

Leave a Comment