Celsius Network asks for bankruptcy court approval to sell stablecoin

By Sarah Lizee

Olympia, Wash., Sept. 16 – Celsius Network LLC is seeking court approval to sell or exchange its stablecoin, according to a motion filed with the U.S. Bankruptcy Court for the Southern District of New York.

The debtor said stablecoins are an important subset of cryptocurrencies because their value is tied to another currency – usually one-to-one with fiat currency.

Celsius currently owns 11 different forms of stablecoin totaling about $23 million.

Normally, Celsius used stablecoins in its retail and institutional lending services, and would monetize its stablecoin assets as needed to fund operations.

Since filing bankruptcy, however, the debtor ceased its active retail lending programs, among other activities.

The company had also agreed that it wouldn’t liquidate or exchange any cryptocurrency without further court approval.

Celsius said it should be allowed to monetize the stablecoins to fund operations in its Chapter 11 case, given its market stability compared to other types of cryptocurrencies.

The Hoboken, N.J.-based cryptocurrency lending platform filed bankruptcy on July 13 under Chapter 11 case number 22-10964.

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