For greater good: NY judge allows Celsius to mine, sell Bitcoin

0
147
Advertisement

Even 24 hours after revealing a three-month cash flow forecast that threatens to completely deplete funds, a New York judge has allowed cryptocurrency lender Celsius Network to mine and sell Bitcoin (BTC) during its bankruptcy.

Since July 2022, Celsius Networks has been in the crosshairs of US officials after reports of bankruptcy emerged, which risks losing the living savings of many cryptocurrency investors.

During the second day of the hearing, Chief Bankruptcy Judge Martin Glenn of the Southern District of New York approved Celso’s application to manage the mining and sale of BTC as a means of restoring financial stability.

However, Glenn raised concerns regarding the immediate profitability of BTC mining as he rightly pointed out the high initial investment needed to create the mining infrastructure.

However, the latest approval is only limited to mining and selling mined BTC. The court forbade Celsius from selling equity or debt investments in other crypto companies and required the crypto lender to disclose information about the assets in advance.

The decision to allow an underdeveloped crypto company to start crypto mining operations stems from concerns raised by investors about the unfair outcomes presented by more than 250 clients – as described above.

Despite fears that the money will run out by October, the company’s lawyer has reiterated that the mining investment will pay Celsius a profit. The US Department of Justice and the Texas State Securities Board, which had previously opposed Celsius’ intention to delve into BTC mining, also withdrew their objection after Celsius made it clear that he would only sell mined bitcoin for cash.

Celsius also revealed during the hearing that the price of BTC has grown by 25% since the company filed the petition. The final hearing will take place on September 1, which will see the plan finalized before Celsius exits and the money is distributed.

Related topics: German crypto bank Nuri with 500 thousand users files for bankruptcy

Singapore-based crypto lending platform Hodlnaut suspended withdrawals and deposits on August 8, due to poor market conditions and a lack of liquidity.

Shortly after revealing the suspension of services, including token swaps, Hodlnaut announced that it was working on redemption plans, adding:

“We are consulting with Damodara Ong LLC on the feasibility and timelines for the intended implementation plan and strategizing for the recovery plan keeping in mind the best interests of our users.”
After closing the service, Hodlnaut suspended all of her social media accounts except Twitter and Telegram.

Advertisement

LEAVE A REPLY

Please enter your comment!
Please enter your name here