On August 16, the crypto lender Celsius Network has been approved by a bankruptcy court judge to sell bitcoin the company previously mined to continue funding specific operations. The following day, the company’s attorney detailed that Celsius has been offered cash injections, but the lawyer did not disclose who offered the funds and how much was presented.
Celsius Approved to Sell Mined Bitcoin, Lawyer Says Firm Contacted with Cash Offers 58,000 Mining Equipment is Deployed in the Company’s Mining Operations
A Southern District of New York court order signed Wednesday by Judge Martin Glenn and filed by Courtroom Deputy Deanna Anderson states that Celsius has been given the opportunity to sell bitcoin to the company’s previously unbanked mining operation. In addition to providing cryptocurrency lending services, Celsius also operates bitcoin mining operations.
A court document from the company’s lawyer Joshua Sussberg explains that the crypto lending firm’s mining operations mined $8.7 million worth of bitcoin last month. The document notes that bitcoin sales occurred before the petition date on July 13, 2022, and Sussberg’s letter said Celsius had “approximately 58,000 [mining] rigs deployed.”
Sasberg also told the court that Celsius had received offers for a cash injection, but did not mention interested parties or the amount of money offered. News Ripple Labs said the company is interested in learning about Celsius and the crypto lender’s assets. Ripple’s statement came after the company was asked why it wanted to comment on Celsius’ bankruptcy court filing.
Celsius Customer Alleges That Centre Consitorium’s Built-in Safety Measures Should Have Prevented Her From Losing 50,000 USDC
Additionally, a myriad of letters addressed to the Southern District of New York judge Martin Glenn continues to flood the court’s filings. One customer, the retired Carol Becht explained in her letter that she held 50,000 usd coin (USDC) on the Celsius platform. After doing some research about USDC’s backing and how Centre issues the stablecoin, Carol Becht said she could not fathom how her USDC just evaporated. The Celsius customer insisted that the stablecoin USDC should be treated differently because Centre and Circle Financial are regulated and licensed.
The Celsius customer wrote to judge Glenn, “I don’t understand how Celsius USDC can disappear, given the security measures the Center has built into USDC, unless Celsius has provided false information.” The letter to the New York judge concludes, “I do not think that USDC should be equated to crypto holdings in Celsius in the statements above.”
