Celsius Gets Permission to Sell Mined Bitcoin, Client Who Loses 50,000 USDC Insists Regulated Stablecoins Should Be Treated Differently – Bitcoin News

On Aug. 16, cryptocurrency lender Celsius Network has received approval from a bankruptcy court judge to sell the company’s previously mined bitcoin to continue funding a specific business. The next day, the company’s lawyer detailed the cash infusion to Celsius, but the lawyer did not disclose who provided the funds and how much.

Celsius gets permission to sell mined bitcoins, lawyers say firm nears cash offer, 58,000 rigs deployed in mining operations

The Southern District of New York court order, signed Wednesday by Judge Martin Glenn and filed by deputy Deanna Anderson, explained that Celsius had an opportunity to sell the company’s previously mined bitcoin. In addition to offering crypto lending services, Celsius also operates a bitcoin mining business.

A court filing from the company’s attorney, Joshua Sussberg, explained that the crypto lending company’s mining operations mined $8.7 million worth of bitcoin last month. The filing states that the bitcoin sale occurred before the petition date of July 13, 2022, while Sussberg’s letter said Celsius had “approximately 58,000 [mining] The rig has been deployed. “

Sussberg also told the court that Celsius had received the cash injection offer, but made no mention of the parties involved or the amount of funds provided. The news comes after Ripple Labs said the company is interested in learning about Celsius and the assets of cryptocurrency lenders. Ripple’s statement stemmed from the company being asked why it would comment on Celsius’ bankruptcy court filing.

Celsius client claims center consortium’s built-in security should prevent her from losing 50,000 USDC

In addition, countless letters to Judge Martin Glenn of the Southern District of New York continue to flood court documents. One client, retired Carol Becht, explained in her letter that she was holding $50,000 in Coins (USDC) on the Celsius platform. After doing some research on USDC support and how Center issues stablecoins, Carol Becht said she couldn’t understand how her USDC evaporated. Celsius clients insist the stablecoin USDC should be treated differently because Center and Circle Financial are regulated and licensed.

“I don’t understand how Celsius USDC could disappear because of the security measures built into USDC by Centre, unless Celsius falsified the information,” Celsius clients wrote to Judge Glenn. “In light of the above statements, I do not believe that USDC should be considered the same as the Celsius cryptocurrency holdings,” the letter to the New York judge concluded.

tags in this story

50000 USDC, Bankruptcy, Bankruptcy Court, Carol Becht, Cash Injection, Cash Offer, Celsius Bitcoin, Celsius Crypto Lender, Celsius Client, Celsius Lawyer, Chapter 11 Bankruptcy, Court Documents, Court Attorney Deanna Anderson, Crypto Lender, Bankruptcy, Joshua Sussberg, Judge Martin Glenn, Mined Bitcoin, Mined BTC, Restructuring, Ripple, Ripple Labs, Southern District of New York, USD Coin, USDC

What do you think of the judge’s approval of Celsius to sell mined bitcoin? What do you think of the client who lost 50,000 USDC? Let us know what you think about this topic in the comments section below.

Jamie Redman

Jamie Redman is the Head of News at Bitcoin.com News and a fintech reporter living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written over 5,700 articles for Bitcoin.com News on the disruptive protocols emerging today.

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