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Celsius’ motion to sell stablecoin draws objection from committee
By Sarah Lizee
Olympia, Wash., Oct. 26 – Celsius Network LLC’s motion seeking court approval to sell or exchange its stablecoin drew an objection from the official committee of unsecured creditors, according to court documents filed with the U.S. Bankruptcy Court for the Southern District of New York.
The committee said it recognizes that the debtors may eventually need additional liquidity to administer its cases and emerge from bankruptcy, and that selling the stablecoin may be a less costly source of financing than debtor-in-possession financing, borrowing from decentralized finance protocols or other sources of liquidity.
However, the ownership of the stablecoin is contested by some creditors that transferred stablecoin to the debtors.
At the beginning of the cases, the debtors said the question of whether they or account holders own crypto assets held on the Celsius platform is one of the key legal issues in the cases.
“In the more than three months since the commencement of these cases and the 40 days since the filing of the stablecoin sale motion, the debtors have not met their burden to establish which (if any) crypto assets constitute property of the estate,” the committee said in its objection.
The committee said that until the debtors provide sufficient evidence to establish that they own the stablecoin they are seeking to sell, they should not be permitted to sell those assets.
As previously reported, the company said in its motion seeking approval of the sale that it currently owns 11 different forms of stablecoin totaling about $23 million.
The Hoboken, N.J.-based cryptocurrency lending platform filed bankruptcy on July 13 under Chapter 11 case number 22-10964.
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