Celsius Network files motion to liquidate stablecoins

The crypto-lending platform Celsius Network подала запрос in the process of restructuring filed a request to liquidate stablecoins worth about $23 million.

If approved, the liquidity obtained will be used to fund its operations.

“Stablecoins” are the property of the debtors, but repayment of the obligations to them is part of a separate process.

The court will consider the proposal on October 6.

On June 13, the crypto-lending platform paused withdrawals, exchanges and transfers between accounts.

A month later, Celsius and some affiliated entities filed for bankruptcy in accordance with Chapter 11 of the U.S. Bankruptcy Code.

The platform presented a business-reorganisation plan, aimed at using the revenue from the mining subsidiary to satisfy creditors’ claims. Celsius’s liabilities exceed its assets by $2.85 billion.

In August, the U.S. Trustees’ Office raised “numerous questions” to the company’s management. Prior to that, the Financial Times reported on the intervention by the platform’s CEO Alex Mashinsky in implementing the trading strategy, which cost “millions of dollars”.

In September, Mashinsky unveiled a plan to save the company from bankruptcy, according to the press.

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