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Embattled Crypto Lender Celsius Receives Court Approval for Bitcoin (BTC) Mining and Sales

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Embattled crypto lender Celsius Network has reportedly been green-lighted to mine and sell Bitcoin (BTC) amid bankruptcy proceedings.

Reuters reports that Martin Glenn, Chief Judge of the U.S. Bankruptcy Court for the Southern District of New York, has allowed Celsius to engage in Bitcoin mining despite concerns surrounding its recent struggles.

Celsius has previously argued that Bitcoin mining is crucial to its restructuring effort. One of the company’s lawyers, Ross Kwasteniet, said he was optimistic that the crypto lender will make a profit once investments are made for the mining operation. 

Despite being granted permission to mine and sell BTC, Celsius was not cleared to sell its other assets.

Glenn says that Celsius was vague about which assets it wishes to dispose of and only recently revealed that it includes $210 million worth of equity and debt investments in other crypto firms.  Payments firm Ripple is reportedly interested in buying assets owned by the troubled firm.

Glenn’s decision comes amid reports claiming that prior to declaring bankruptcy, Celsius traded hundreds of millions worth of Bitcoin at a loss when its CEO, Alex Mashinsky, took control of the firm’s trading strategy. 

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Celsius and Mashinsky also face other legal issues. The Department of Financial Protection and Innovation of California (DFPI) recently issued a desist and refrain order citing that the company engaged in misleading marketing tactics and sold unauthorized securities in its jurisdiction. 

A committee representing Celsius users is currently conducting an investigation on Mashinsky’s alleged wrongdoing.

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  • Source: https://dailyhodl.com/2022/08/17/embattled-crypto-lender-celsius-receives-court-approval-for-bitcoin-btc-mining-and-sales/

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