Beleaguered crypto firm Celsius Network, has filed with the court for authorization to sell its stablecoin holdings in order to generate liquidity to help fund its operations.
Celsius currently owns 11 different forms of stablecoin, for a total of about $23 million across its US, UK and EU branches.
If the presiding judge Martin Glenn, who is also the Chief U.S. bankruptcy judge, approves this motion then the proceedings from the sale would go to primarily pay for the operations of the firm.
The filing also reads that the “debtors, however, continue to own stablecoins that should be monetized to fund their operations in these Chapter 11 cases given their market stability compared to other types of cryptocurrencies.”
Thus, the proceedings generated by the sale of these stablecoins would constitute part of Debtor’s estate, and paying them back is part of a separate and ongoing process.
The final decision would be made in a hearing scheduled for October 6.
The firm filed for bankruptcy back in July of this year, and its case is being handled in the U.S. Bankruptcy Court for the Southern District of New York.
Judge Martin Glenn previously approved the use of an independent examiner probe in the case of Celsius’ bankruptcy. The judge ruled that the scope of an independent examiner would include speculation of several areas including Celsius’ crypto holdings.
