Crypto Lending Company Celsius Files for Permission to Sell Its Stablecoin Holdings

The bankrupt company currently owns 11 forms of stablecoins totaling approximately $23 million, according to disclosures.

AccessTimeIconSep 16, 2022 at 5:20 a.m. UTC
Updated May 11, 2023 at 6:56 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Crypto lending firm Celsius Network, which is currently in Chapter 11 bankruptcy proceedings, has asked the court for authorization to sell its stablecoin holdings in order to generate liquidity to help fund its operations, according to new court filings.

  • Celsius filed for bankruptcy in July, and is currently before the U.S. Bankruptcy Court for the Southern District of New York, which is also hearing Three Arrows Capital's bankruptcy case.
  • If this motion is approved by presiding Judge Martin Glenn, the chief U.S. bankruptcy judge, the proceedings of the sale would go to primarily pay for the operations of Celsius Network. While the proceeds generated by the sale of the stablecoins constitute property of the debtors' estate, paying them back is part of a separate and ongoing process.
  • "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," the filing reads.
  • Celsius' official committee of unsecured creditors made a deal with the U.S. Trustee's office earlier in September to appoint an independent examiner, provided they took certain steps to limit the amount of time and funding the examiner would take. Celsius agreed to join the examiner, and the judge signed off on the deal on Wednesday.
  • A hearing is scheduled for Oct. 6 in New York to discuss the proposed stablecoin sale.
  • BlackRock's Spot Bitcoin ETF Filing 'Will Get Approved,' Mark Yusko Predicts
    10:58
    BlackRock's Spot Bitcoin ETF Filing 'Will Get Approved,' Mark Yusko Predicts
  • UK and EU Push Ahead on Stablecoin Regulation; Hong Kong Approves Another Crypto Exchange
    26:05
    UK and EU Push Ahead on Stablecoin Regulation; Hong Kong Approves Another Crypto Exchange
  • Stablecoin Plans From UK Regulators Is the 'Next Stage' for Crypto Regulation: Legal Expert
    01:14
    Stablecoin Plans From UK Regulators Is the 'Next Stage' for Crypto Regulation: Legal Expert
  • UK Financial Watchdogs Reveal Stablecoin Regulation Proposals
    08:44
    UK Financial Watchdogs Reveal Stablecoin Regulation Proposals
  • Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Nikhilesh De

    Nikhilesh De is CoinDesk's managing editor for global policy and regulation. He owns marginal amounts of bitcoin and ether.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.