Leer en Español
The bankruptcy judge, Martin Glenn, of the Southern District of New York, has determined that the digital cryptocurrency wallet Celsius will be able to mine bitcoin to solve the liquidity problems that have it on the verge of bankruptcy.
Celsius —to avoid losing liquidity after the debacle in the cryptocurrency market experienced throughout 2021— withheld the withdrawal of funds from its users, which led to protests in the crypto community along with several lawsuits to the wallet by its users.
With the release of the Celsius digital wallet’s cash flows, it has been revealed that the digital wallet will run out of money by October.
Last week many got very upset with me as I said @CelsiusNetwork would run out of money & solutions needed to be acted upon faster. I was told I don’t understand Chapter 11. They have now confirmed they run out of money by October. https://t.co/CyzjgKpId7 pic.twitter.com/vBIRIGEmG2
— Simon Dixon (Beware Impersonators) (@SimonDixonTwitt) August 15, 2022
During the second day of the hearing, the judge authorized Celsius’ request to start a bitcoin mining and sales operation to achieve financial stability.
Despite the authorization, the court raised concerns about Celsius’ ability to provide liquidity from bitcoin mining quickly.
The company stated that with the increasing rise in the price of bitcoin, which for the past month has recovered as much as 25% of its value, it would be able to get its finances in order.
The DOJ and the Texas State Securities Board, which previously objected to Celsius’ intention to engage in bitcoin mining, also withdrew their objection after the company clarified that it would only sell mined bitcoin in exchange for cash.
Today, alongside the Unsecured Creditors Committee (UCC), made up primarily of customers, the U.S. Trustee, and a number of other key parties, we participated in the Second Day Hearing where we continued the dialogue around Celsius’ efforts to maximize value for our community.
— Celsius (@CelsiusNetwork) August 17, 2022
The recent approval is limited to the sale and mining of bitcoin. The Southern District of New York court did not authorize Celsius to issue debt or sell stock to acquire financing.
Economist, writer and liberal. With a focus on finance, the war on drugs, history, and geopolitics // Economista, escritor y liberal. Con enfoque en finanzas, guerra contra las drogas, historia y geopolítica