Celsius files for permission to sell its stablecoin holdings

Bankrupt crypto lender Celsius Network , filed a request for sale of its stablecoin holdings, in a bid to generate liquidity to fund its operations.

The New Jersey-based company intends to sell their current and any future stablecoins it may receive, as needed, to fund its Chapter 11 cases, according to a court document.

The request was filed with the United States Bankruptcy Court Southern District Of New York and a hearing is scheduled on October 6 to discuss the proposed sale, the document showed.

Celsius had filed for bankruptcy in New York in July, after it froze withdrawals, citing “extreme” market conditions.

Celsius currently owns 11 different forms of stablecoin, for a total of about $23 million.

Major crypto lenders have faced a rocky year, as the popular terraUSD and luna tokens collapsed in May that caused huge losses for several major industry players.

US crypto lender Voyager Digital Ltd also filed for bankruptcy in July.

(Reporting by Maria Ponnezhath in Bengaluru; Editing by Neha Arora)


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