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On August 16, crypto lender Celsius Network was approved by a bankruptcy judge to sell bitcoin the company previously mined to continue funding specific operations. The next day, the company’s lawyer stated that Celsius has been offered a cash injection, but the lawyer did not disclose who offered the funds and how much was presented.
A court order in the Southern District of New York signed by Judge Martin Glenn on Wednesday and filed by Deputy Chief Justice Deanna Anderson explains that Celsius has been given the opportunity to sell the bitcoin the company’s mining operations previously mined. In addition to offering crypto lending services, Celsius operated a bitcoin mining operation.
A court document from the company’s lawyer Joshua Sussberg explains that the crypto-lending firm’s mining operations mined $8.7 million worth of bitcoin last month. The document notes that bitcoin sales occurred before the petition date of July 13, 2022, and Sussberg’s letter said Celsius had “approximately 58,000 [mining] rigs deployed.”
Sussberg has also told the court that Celsius has received offers for a cash injection, but has not mentioned the stakeholders or the amount that was offered. The news follows Ripple Labs saying the company was interested in learning about Celsius and the crypto lender’s assets. Ripple’s statement came when the company was asked why it wanted to comment on Celsius’ bankruptcy court filings.
In addition, a flood of letters addressed to Southern District of New York Judge Martin Glenn continues to flood the court’s archives. One customer, retiree Carol Becht, explained in her letter that she held 50,000 usd coins (USDC) on the Celsius platform. After doing some research on USDC’s support and how the Center issues stablecoins, Carol Becht said she couldn’t fathom how her USDC just evaporated. The Celsius client insisted that stablecoin USDC should be treated differently because Center and Circle Financial are regulated and licensed.
“I don’t understand how Celsius USDC can just disappear given the safeguards built into USDC by Centre, unless Celsius falsified information,” the Celsius customer wrote to Judge Glenn. “I do not believe USDC should be treated the same as crypto holdings in Celsius given the above statements,” the letter to the New York judge concludes.
What do you think about the judge giving Celsius approval to sell mined bitcoin? What do you think about the customer who lost 50,000 USDC? Let us know what you think about this topic in the comments section below.
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