Celsius Network creditors block sale of part of mined bitcoins

The Celsius Network creditors committee, during a bankruptcy court hearing, secured an injunction prohibiting the company from selling part of the mined bitcoins. Decrypt reports.

The initiative group also described Alex Mashinsky’s assurances as “empty and false,” the CEO of the crypto-lending platform, which he gave a few days before the заморозки активов клиентов.

The committee’s lawyers explained that the move was necessary to gather additional information regarding the sale of the first cryptocurrency and the use of the proceeds.

In early July, the court allowed the company to spend more than $5 million to complete the construction of a mining facility in Texas. According to the platform’s representatives, this could take around two months. The decision was criticized by the U.S. Department of Justice.

On July 19, the company представила план реорганизации бизнеса. It envisages directing the profits of the subsidiary mining company to reimburse losses to users and pay creditors. Prior to this, Celsius Mining подала to the SEC for an IPO.

The committee also stated that it intends to obtain the court’s application of Правила 2004 as part of a “wide-ranging investigation.” It would entail testimony from interested parties and the production of documents in a process akin to civil litigation.

As reported, on July 13, Celsius подала for bankruptcy protection in New York under Chapter 11 of the U.S. Bankruptcy Code. The company said its liabilities exceed the assets on its balance sheet by almost почти на $1,2 млрд.

Read ForkLog’s Bitcoin news in our Telegram — cryptocurrency news, prices and analysis.