Celsius Assets Will be Up for Bidding Later This Month

Troubled crypto lender Celsius Networks has set the date for bidding of its assets. After filing for Chapter 11 bankruptcy, many big players including FTX U.S. have shown interest in acquiring Celsius’s assets.

As per the filing with the US Bankruptcy Court for the Southern District of New York dated Monday, Celsius Networks will put a final bid deadline on October 17, 4 PM. If necessary, it will also conduct an auction on October 20.

The filing also added that the sale hearing will be held on November 1 before Chief US Bankruptcy Judge Martin Glenn. The collapse of the Celsius Networks was one of the most high-profile downfalls in the history of crypto.

It started with the collapse of the Terra ecosystem which eroded more than $60 billion in investors’ wealth. This further led to the downfall of hedge fund Three Arrows Capital (3AC) which has huge positions in LUNA. The cascading effect of the same was felt by Celsius Networks who lend a huge amount to 3AC.

As said, crypto exchange FTX has been one of the forerunners in the bid for Celsius’s assets. Amid the strong crypto meltdown this year, FTX has been acquiring some of the distressed industry players this year.

The U.S. DoJ Objects to Celsius Resuming Withdrawals

In another development, the U.S. Department of Justice (DoJ) has objected to Celsius’s motion of resuming withdrawals for select customers as well as selling its stablecoin holdings. Celsius Networks had frozen withdrawals back in mid-June citing huge liquidity issues.

The DoJ said that Celsius’s finances have been lacking transparency and this move shouldn’t be considered until a proper independent examiner has been assigned to Celsius. Along with the DoJ, other three regulatory agencies have also objected to Celsius selling its stablecoin holdings.

They noted that there’s a risk of Celsius using this capital to resume operations which would be violating U.S. laws. In a filing last week, a U.S. Trustee for the DOJ, William Harrington objected to Celsius opening its withdrawals. He stated:

“The Motions are premature and should be denied until after the Examiner Report is filed. First, the Withdrawal Motion seeks to impulsively distribute funds to one group of creditors in advance of a fulsome understanding of the Debtors’ cryptocurrency holdings.”

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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