The troubled crypto lender’s assets will soon be up for auction.
The timeline for the auction of Celsius’ assets has been revealed according to a filing with the US Bankruptcy Court for the Southern District of New York.
The last bid deadline is 17 October, and if necessary an auction will be held on 20 October 2022.
The sale hearing, a hearing conducted by the bankruptcy court to approve the proposed transaction, will then be conducted via Zoom on October 28, 2022.
The filing indicates the court expects “a large number of prospective bidders,” but does not disclose any of the potential buyers.
Celsius, which at one point claimed to have over $20 billion of assets under management, first filed for Chapter 11 bankruptcy protection in July 2022, revealing a $1.2 billion hole in its balance sheet after months of speculation regarding its financial stability.
Alex Mashinsky, the former CEO of Celsius, resigned in late September, calling his own presence “a distraction.”
No parties have yet announced their intention to bid for the assets.
FTX CEO looks at Celsius assets
A potential suitor could be Sam Bankman-Fried, founder and CEO of crypto exchange FTX.
It was widely discussed at the end of September that SBF considered bidding for all or parts of the bankrupt lender’s assets.
It wouldn’t be the first time that Bankman-Fried’s firm has scooped up the assets of a failed crypto firm. FTX.US, the American subsidiary of FTX, bid for the assets of Voyager Digital in late September.
The subsidiary paid $1.4 billion for the crypto asset manager, which went bankrupt in July, beating out bids from Binance and Wave Financial.
Bankman-Fried also extended a $400 million credit line to another troubled crypto lender BlockFi back in August 2022.
Despite the billionaire’s historically aggressive approach to picking up distressed crypto assets, he still wants to take a relatively cautious approach to bailouts in a conversation about Decrypthis gm podcast, saying, “There’s a limit to how much we want to throw good money after bad.”
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