Bankrupt Celsius Network Finalizes Dates for Auctioning of Assets

In Brief

• Celsius has set dates for the auctioning of assets.
• The sale hearing will be held on Nov. 1., and many are expected to attend.
• There are also reports that Celsius plans to create an IOU cryptocurrency to pay customers.

According to a court filing, Celsius Network has set dates for the auctioning of assets. The sale hearing will take place on Nov. 1.

Bankrupt cryptocurrency lending firm Celsius Network has set dates for the auctioning of assets, according to a filing submitted to the U.S. Bankruptcy Court for the Southern District of New York on Oct. 3. The auction will be held on Oct. 20 at 10 AM Eastern Time.

The sale hearing will be held on Nov. 1, and the filing says that a large number of participants are expected. As such, it states that there may be a delay in the waiting room before admission to the hearing is offered. Regarding the rules of the Zoom meeting, the filing says,“When parties sign in to Zoom for Government and add their names, they must type in the first and last name that will be used to identify them at the Hearing. Parties that type in only their first name, a nickname or initials will not be admitted into the Hearing.”

The development is a move forward in the case, which has been dragging on for months. There have been several notable incidents even in recent weeks, including the resignation of now-former CEO Alex Mashinsky. Leaked audio obtained by CNBC shows that Celsius plans to create an IOU cryptocurrency to pay customers.

Celsius bankruptcy; one of many in 2022
2022 has been marked by several bankruptcies brought on by the crypto winter earlier in the year. Three Arrows Capital, Voyager Digital, and the collapse of TerraUSD have all roiled the market.

Voyager filed for Chapter 11 bankruptcy in July 2022 and has since been working on returning funds to customers. FTX acquired those assets for $1.4 billion, adding to the rumor that it would purchase Celsius’ assets.

The fall of Three Arrows Capital was another major incident in the market, with a liquidation ordered in court in June 2022. Creditors alleged that the founders pulled funds out before the collapse.

FTX is on a roll with purchasing assets
FTX’s streak of purchasing assets from bankrupt companies has been making headlines. Sam Bankman-Fried has said that the goal of buying assets is to make a profit but to get the money back and recompense the customers. Meanwhile, a court filing showed that Bankman-Fried’s Alameda Research was ordered to give Voyager $200 million to pay off a loan.

FTX is also rumored to make a bid for Celsius’ assets. Bankman-Fried made it known that the company has billions to help the crypto industry, with the intention of helping customers and preventing a further destabilization of the digital asset industry.

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