Celsius Network had filed for bankruptcy following the collapse of the largest network in crypto history. The lending platform had been caught in the crossfire, with further reports showing it had a $1.2 billion hole in its balance sheet. The company, which has been going through bankruptcy proceedings in the United States Bankruptcy Court for the Southern District of New York, has now announced the final date for the auction of its assets.
Celsius sets the deadline for bids
Bankrupt crypto lender Celsius Network has reached the point in its bankruptcy proceedings where it is starting to accept bids for its assets. Celsius announced that the final tender deadline for its asset was set for October 17, after which no further bids would be considered. A sales hearing is also scheduled for Nov. 1 before US Chief Judge Martin Glenn via Zoom.
The bids for the company’s assets follow those of Voyager Digital, which just completed and accepted an offer from crypto exchange FTX to take over the company’s assets for a total of $1.4 billion. Interestingly, FTX had also expressed interest in buying Celsius assets. However, the crypto exchange has yet to make an official bid for the assets.
The filing also notes that an auction will be held on Oct. 20 if necessary, and interested parties will have until Oct. 25 to object to a sale before the final sale hearing. All eyes are currently on FTX, given the company’s streak of rescuing crypto companies since the collapse of the Terra network in early 2022.
CEL price holds up at $1.33 | Source: CELUSD on TradingView.com
When will investors get their crypto?
The question hanging very much on Celsius Network’s tongues is when they will get their crypto currently stuck on the platform back. Bankruptcy procedures for such large companies are usually complicated and lengthy, so the natural response to this is that users will be waiting a while before they can claim their crypto.
There’s also the fact that the company has yet to release a claims form that allows users to claim their assets for their crypto value rather than their dollar value. Celsius had announced that this would be forthcoming, but so far there have been no developments on that front.
In September, Celsius had asked the court to allow it to open withdrawals for users operating “Custody” accounts on the platform. However, the United States Department of Justice (DOJ0) had countered this and also rejected Celsius’ motion to sell all of its stablecoin holdings.
U.S. Trustee William Harrington called Celsius’ move “premature,” and the DOJ objected, saying a proper independent review is needed since the company’s finances have not been accurate. Bids are expected to start receiving Celsius assets soon as the company expects a large number of participants.
Featured image from Watcher Guru, chart from TradingView.com
keep going Best Owie on Twitter for market insights, updates and the occasional funny tweet…
