Cryptocurrency As the liquidity crisis continues, Celsius company has sought permission from the US Bankruptcy Court for the Southern District of New York to sell its stablecoin holdings.
The company stopped customer withdrawals in June.
Court filings show that Celsius is seeking authorization to sell its stablecoins to pay for its operations. The company previously released a coin report on Wednesday revealing that it has over $2 billion in debt from various cryptocurrencies.
Cryptocurrency Company Celsius Wants to Sell $23M of Assets in 11 Different Stablecoins
The company’s stablecoins amount to about $23 million in total, distributed across 11 different cryptoassets.
If the request is approved by US Chief Bankruptcy Judge Martin Glenn, Celsius will have the liquidity to continue its day-to-day operations “without court or creditor oversight.”
Reimbursing its creditors (aka customers) is a separate ongoing legal process, but Celsius’s filing argues that it’s in everyone’s interest for the company to monetize its stablecoin assets to continue operating without additional financing.
Bitcoin, Ethereum and unlike other leading cryptocurrencies, stablecoins have a stable value as they are pegged to fiat currencies and therefore constitute a relatively reliable source of liquidity in crypto.
If Celsius’s request is approved, the returned funds will only cover a portion of the company’s obligations. It is not yet clear when people who have invested $4.3 billion in the company’s “win” program will receive their money.
*Not investment advice.
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