Celsius seeks permission to sell its stablecoins

The crypto credit company intends to obtain the liquidity and support its operations with the funds from the sale.

Celsius Networks, a crypto lending company that froze withdrawals in June and has been in Chapter 11 bankruptcy since July, filed a petition in the United States Bankruptcy Court for the Southern District of New York permission to sell his stablecoin holdings. This should allow the company to generate cash to help "fund debtor operations".

A notice was filed by the Celsius legal team at law firm Kirkland & Ellis on September 15. A hearing in which the court would accept or deny the motion will take place on October 6.

According to the filing, the company currently holds an equivalent amount of $23 million in 1 different stablecoins. If sold, these funds would be used to support Celsius' current operations. Citing Section 363 of the Bankruptcy Code, the filing notes:

"Section 363 of the Bankruptcy Code is designed to strike a balance between allowing a business to continue its day-to-day business without undue oversight from the courts or creditors and protecting secured creditors and others from the dissipation of the mass. »

Celsius recently filed a lawsuit, pledging to partially return the money to customers. However, this would only apply to custodial and holdback accounts and custodial assets with a value of $7,575 or less. The move drew criticism from some industry leaders, as the limitation means only $50 million out of $210 million could be released.

Related: Court records reveal Celsius will run out of money by October

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