Embattled Crypto Lender Celsius Receives Legal Approval for Bitcoin (BTC) Mining and Sales
Embattled crypto lender Celsius Network has reportedly been given the green light to mine and sell Bitcoin (BTC) during bankruptcy proceedings.
Reuters reports that Martin Glenn, Chief Judge of the US Bankruptcy Court for the Southern District of New York, has allowed Celsius to engage in Bitcoin mining despite concerns about its recent struggles.
Celsius has previously claimed that Bitcoin mining is essential to its restructuring efforts. One of the company’s lawyers, Ross Kwasteniet, said he was optimistic that the crypto lender will make money once investments are made for mining operations.
Despite being allowed to mine and sell BTC, Celsius was not cleared to sell its other assets.
Glenn says Celsius was vague about what assets it wants to divest and only recently revealed that it includes $210 million in equity and debt investments in other crypto firms. The payments company Ripple is reportedly interested in buy assets owned by the troubled firm.
Glenn’s decision comes amid reports that claim that before declaring bankruptcy, Celsius traded hundreds of millions of Bitcoin to a loss when CEO Alex Mashinsky took control of the firm’s trading strategy.
Celsius and Mashinsky also face other legal problems. The Department of Financial Protection and Innovation of California (DFPI) recently issued a refrain and refrain orders citing that the company engaged in deceptive marketing tactics and sold unauthorized securities in its jurisdiction.
A committee representing Celsius users is currently conducting one investigation about Mashinsky’s alleged wrongdoing.
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