The US Department of Justice (DOJ) has challenged bankrupt cryptocurrency platform Celsius Network’s plan to sell stablecoin assets to pay for ongoing operations.
Celcius went bankrupt in order to be able to pay its customers and meet the financial burden of ongoing operations. demanded to sell stablecoins. After this request Texas state agencies recently filed a bankruptcy court filing regarding Celcius’ stablecoin sales.
After Texas’ objection, the DOJ took a stance against meeting the request. The DOJ argued that Celsius’ finances lacked transparency and that important decisions like these should not be considered until the independent review report is submitted.
September 30Member of the U.S. Department of Justice Board of Trustees in an application filed with the Bankruptcy Court for the Southern District of New York in William Harringtonmade the following statements that Celsius’s request was inadmissible:
Claims are premature and should be rejected until the independent review report is filed. A thorough investigation of borrowers’ cryptocurrency holdings is required before the move to withdraw funds or sell stablecoins.
While the pressures on Celcius by policy makers continue, a famous Celcius investor, Simon Dixon that the process in question may result in an auction procedure. He claimed. Something similar to this happened recently Voyager Digital as a result of the lived and auctioned assets $1.4 billion in exchange for Voyager’s assets FTXIt was handed over to.