What led to this scenario?
Following the worst network meltdown in cryptocurrency history, Celsius Network (1) filed for bankruptcy. Having been caught in the crossfire, the lending platform had a $1.2 billion hole in its financial sheet, according to additional reports. A deadline for final bids on the company's assets has already been declared. The company has been undergoing bankruptcy proceedings in the US Bankruptcy Court for the Southern District of New York.
What's the Future Of Celsius?
The stage of the bankruptcy process when the bankrupt cryptocurrency lender Celsius Network is now accepting bids for its assets has been reached. Celsius reported that the asset's final bid date, after which no additional offers will be considered, was set for October 17 (2)
On November 1, a sales hearing will take place via Zoom before Chief US Bankruptcy Judge Martin Glenn. Following Voyager Digital, which recently finalized and accepted a proposal from cryptocurrency exchange FTX (3) to acquire the firm's assets for a total of $1.4 billion, bids have been made for the company's assets. It's interesting that FTX also showed interest in buying Celsius assets.
However, the cryptocurrency exchange has not yet formally offered the assets. According to the application, if an auction is required, it will take place on October 20. Interested parties will have until October 25 to protest a sale before the final sale hearing. Since the Terra network collapsed earlier in 2022, FTX has a history of saving crypto firms. Thus, the company is currently the focus of attention.
When Would Traders Receive Their Crypto?
This is the question that weighs heavily on the minds of traders. The obvious response is that users will have to wait a while before they can collect their cryptocurrency because bankruptcy proceedings of such huge corporations are frequently difficult and drawn out.
Additionally, the company has not yet made available a claims form that will enable consumers to make claims for their assets based on their crypto worth rather than their USD value. There has been no progress on this front despite Celsius's announcement that it would soon.
Celsius had requested permission from the court to open withdrawals for users who used "Custody" accounts back in September. The US Department of Justice, however, had objected to this and had also denied Celsius' request to sell out all of its stablecoin assets. The DOJ objected, arguing that a proper independent exam was necessary because the firm's finances had not been correct. Due to the anticipated high volume of participants, bids for Celsius' assets will begin soon.