Will Celsius Network Sell Nearly $23 Million Worth of Stablecoin Holdings?

Bankrupt cryptocurrency lender Celsius is getting conscious of its users and future operations. Celsius filed for bankruptcy in July after a long battle resolving issues, leaving the once top crypto lending firm with nearly $3 billion in liabilities. Being at the chapter 11 bankruptcy proceedings, Celsius has requested the court to sell its holdings of stablecoin to fund its operations by earning liquidity, according to new court filings. 

Celsius In Extreme Fear

Celsius is getting woes about the uncertainty of its future operations and dominance in the crypto market. The users of the lending platform are not even sure whether they will see their crypto that is locked in the platform. 

Celsius was established in 2017 and became one of the first and largest cryptocurrency platforms where users could deposit their owned crypto assets to generate rewards or get loans using their assets as collateral. Celsius has attracted more than 1.7 million registered users and nearly 300K active users, with its 18% interest rate.

Celsius currently has eleven different forms of stablecoin, whose value is nearly $23 million. The stablecoin is owned by Debtor Celsius Network Limited (UK), Debtor Celsius Network LLC (US), and non-Debtor Celsius Network EU UAB (LT). 

The court filing stated, “The Debtors, however, continue to own stablecoins that should be monetized to fund their operations in these Chapter 11 cases given their market stability compared to other types of cryptocurrencies.” 

Restore Celsius’ Reputation

The CEO of celsius network celsius network - Lending & BorrowingCryptocurrency investment , 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 , believes that the selling of stablecoin will help the firm to begin its business in a proper way. If the presiding Judge Martin Glenn, the Chief U.S. bankruptcy judge, approves the filings, then the selling amount of stablecoin would initially be used for paying for the operations in the Celsius network.

In addition, the selling amount would also be used to pay back the Debtors’ estate, a part of Celsius’ bankruptcy process. Recently, Celsius’ bankruptcy judge gave permission to conduct an independent examination of the crypto lending firm.

The failure of the revolutionizing crypto lending firm Celsius became one of the main reasons behind the crypto market crash. Alex Mashinsky held a meeting with Celsius’ staff on 8 September to rebuild the firm in a new way. Celsius now wants to offer custodial services to users, and it needs to build trust in the crypto market to regain its position.