Celsius Has Released Its Final Bid Deadline, FTX To Dive In?

In early June, the cryptocurrency lending company Celcius Network suddenly announced the suspension of withdrawals. The company filed for bankruptcy after just a month. It was found that the company had a $1.2 billion gap in its balance sheet.

The crypto lender went on to set a date for bidding of its assets after filing for bankruptcy. Following the company’s filing for Chapter 11 bankruptcy, many big players, including FTX U.S., have been displaying their interest in acquiring Celsius’s assets.

According to the most recent filing of Monday with the U.S. Bankruptcy Court for the Southern District of New York, celsius network celsius network - Lending & BorrowingCryptocurrency investment Network has put a final bid deadline on October 17, 4 PM. The company will also be conducting an auction on October 20. The filing mentions that the sale hearing will be held on November 1 before the Chief US Bankruptcy Judge Martin Glenn. 

It all went downhill for Celsius with the collapse of the Terra ecosystem, which eroded more than $60 billion in investors’ wealth. This led to the downfall of hedge fund three arrows capital three arrows capital - Investment platform (3AC) as well, which had huge positions in LUNA. Consequently, the cascading effect was felt by Celsius Network, which lent a considerable amount to 3AC. 

Notably, crypto exchange FTX has been one of the forerunners in the bid for Celsius’s assets. FTX was seen acquiring some of the distressed industry players this year, with the ongoing intense crypto meltdown this year.

U.S. Department of Justice Speaks Out

Back in June, Celsius Network froze withdrawals, citing huge liquidity issues. The U.S. Department of Justice (DoJ) has criticised Celsius’s action of resuming withdrawals for select customers and selling its stablecoin holdings. 

The DoJ said that Celsius’s finances have minimum transparency, and this move associated with withdrawals shouldn’t be validated until a proper independent examiner has been assigned to Celsius. In addition to the DoJ, three more regulatory agencies have objected to Celsius selling its stablecoin holdings.

They have gone against it since they believe there’s a risk of Celsius using this capital to resume operations, violating U.S. laws. Last week, a U.S. Trustee for the DOJ, William Harrington, objected to Celsius opening its withdrawals in a filing. Harrington stated: “The Motions are premature and should be denied until after the Examiner Report is filed. First, the Withdrawal Motion seeks to impulsively distribute funds to one group of creditors in advance of a fulsome understanding of the Debtors’ cryptocurrency holdings.”

Suspicious Activity By The Founder

As per the latest report, Celsius Network founder Alex Mashinsky Alex Mashinsky   Alex Mashinsky is a technology entrepreneur of Israeli-American descent and a prominent person in the cryptocurrency space. He is a co-founder and ex-CEO of Celsius Network, founded in 2017. It is a lending platform built on blockchain technology.   Having a background in leading VOIP technology, he moved into cryptocurrency to offer decentralized financial solutions.   Quick Facts   Full name Alexander Mashinsky Birth 06-10-1965, Ukrainian Soviet Socialist Republic Nationality Israeli-American  Education Electrical Engineering from Tel Aviv University (dropped out) Wife/Partner Krissy Mashinsky Net worth Estimated in millions   Under his guidance, Celsius sought to make banking accessible to all by providing interest-earning crypto accounts and loans. Nevertheless, the platform encountered legal and financial issues, resulting in its insolvency in 2022.   Alex Mashinsky - Career Timeline   1996 – Co-founded Arbinet, revolutionizing VOIP technology. 2017 – Founded Celsius Network, a crypto lending and borrowing platform. 2018 – Launched Celsius token (CEL) to incentivize users. 2021 – Celsius reached $20B in assets under management. 2022 – Celsius filed for bankruptcy amid liquidity issues. 2023 – Faced legal challenges related to Celsius’s collapse.   Despite the controversies, Mashinsky continues to be a strong proponent of blockchain innovation and decentralization, often providing insights on financial liberty, cryptocurrency lending, and the future of decentralized finance (DeFi).   Useful Links To Connect With Alex Mashinsky   Platform Link X (formerly Twitter) www.twitter.com/mashinsky LinkedIn profile linkedin.com/in/mashinsky Celsius Network www.celsius.network Personal Website www.alexmashinsky.com     EntrepreneurChief Executive OfficerBoard Member withdrew a whopping $10 million from the platform just ahead of the cryptocurrency lender freezing its customer accounts, supposedly to pay taxes. This pops up the question of whether the Celsius founder was aware that the crypto lender’s clients would have their funds locked on the platform in advance.