Court Allows Celsius Network to Mine and Sell Bitcoin

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Photo - Court Allows Celsius Network to Mine and Sell Bitcoin
During the Celsius Network’s second bankruptcy hearing, the company was granted permission to continue mining and selling Bitcoin.
The Network that owes $5 billion to its creditors revealed in a tweet dated August 17 wrote, “today, alongside the Unsecured Creditors Committee (UCC), made up primarily of customers, the U.S. Trustee, and a number of other key parties, we participated in the Second Day Hearing where we continued the dialogue around Celsius’ efforts to maximize value for our community.”

The tweet alludes to the Southern District of New York chief bankruptcy judge Martin Glennk’s decision to allow the company to mine and sell the mined BTC. During the hearing, Celsius’ lawyers insisted that mining will generate profits for the Network, as BTC price surged by 25% compared to July.

The company also pledged to sell the mined Bitcoin for cash As a result, the U.S. Department of Justice and the Texas State Securities Board dropped their original objection against the move. 

The move comes in less than 24 hours after Celsius revealed a three-month cash flow forecast that could result in the complete exhaustion of funds already in October.

The final hearing is slated to take place on Sept. 1.

For the time being, Celsius is barred from selling equity or debt investments in other crypto companies. It must also disclose information about the assets in advance. 

Previously, Gagarin News reported that Celsius Network was accused of bizarre behavior. In July, Celsius CEO Alex Mashinsky said that the bankruptcy filing is the right solution as it would bring stability to the business by fully transforming its structure.