Celsius Approved to Sell Mined Bitcoin, Customer That Lost 50,000 USDC Insists Her Regulated Stablecoins Should Be Treated Differently

Bitcoin News

On August 16, the crypto lender Celsius Network has been approved by a bankruptcy court judge to sell bitcoin the company previously mined to continue funding specific operations. The following day, the company’s attorney detailed that Celsius has been offered cash injections, but the lawyer did not disclose who offered the funds and how much was presented.

Celsius Approved to Sell Mined Bitcoin, Lawyer Says Firm Approached With Cash Offers, Company’s Mining Operation Has 58,000 Mining Rigs Deployed

A Southern District of New York court order signed by judge Martin Glenn on Wednesday and filed by courtroom deputy Deanna Anderson explains that Celsius has been granted the opportunity to sell bitcoin the company’s mining operation previously mined. In addition to offering crypto lending services, Celsius operated a bitcoin mining operation.

A court document from the company’s lawyer Joshua Sussberg explains that the crypto lending firm’s mining operations mined $8.7 million worth of bitcoin last month. The document notes that bitcoin sales occurred before the petition date on July 13, 2022, and Sussberg’s letter said Celsius had “approximately 58,000 [mining] rigs deployed.”

Sussberg has also told the court that Celsius has received cash-injection offers but did not mention the interested parties or the amount of funds offered. The news follows Ripple Labs saying the company was interested in learning about Celsius and the crypto lender’s assets. Ripple’s statement stemmed from when the company was asked why it wanted to comment on Celsius’s bankruptcy court filings.

Celsius Customer Alleges That Centre Consitorium’s Built-in Safety Measures Should Have Prevented Her From Losing 50,000 USDC

Additionally, a myriad of letters addressed to the Southern District of New York judge Martin Glenn continues to flood the court’s filings. One customer, the retired Carol Becht explained in her letter that she held 50,000 usd coin (USDC) on the Celsius platform. After doing some research about USDC’s backing and how Centre issues the stablecoin, Carol Becht said she could not fathom how her USDC just evaporated. The Celsius customer insisted that the stablecoin USDC should be treated differently because Centre and Circle Financial are regulated and licensed.

“I do not understand how Celsius USDC can just disappear given safety measures built into USDC by Centre, unless Celsius falsified information,” the Celsius customer wrote to judge Glenn. “I do not believe USDC should be treated the same as crypto holdings in Celsius given the above statements,” the letter to the New York judge concludes.

Tags in this story
50000 USDC, Bankruptcy, Bankruptcy Court, Carol Becht, Cash Injections, Cash offers, Celsius bitcoin, Celsius crypto lender, Celsius Customer, Celsius Lawyer, Chapter 11 Bankruptcy, Court Filings, courtroom deputy Deanna Anderson, Crypto lender, Insolvency, Joshua Sussberg, judge Martin Glenn, Mined Bitcoin, Mined BTC, reorganizing, Ripple, Ripple Labs, Southern District of New York, usd coin, USDC

What do you think about the judge giving Celsius the approval to sell mined bitcoin? What do you think about the customer who lost 50,000 USDC? Let us know what you think about this subject in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,700 articles for Bitcoin.com News about the disruptive protocols emerging today.




Image Credits: Shutterstock, Pixabay, Wiki Commons

Articles You May Like

What is the economic impact of cryptocurrencies?
Will bulls take charge now that Bitcoin price trades above a long term trendline resistance?
Report: UK Gold Dealer Sold Out of Bullion After Pound’s Record Fall Causes Demand to Skyrocket
Bill Aims to Limit Crypto Mining in Kazakhstan Only to Registered Companies
US Senator Introduces ‘No Digital Dollar Act’ to Prohibit Treasury and the Fed From Interfering With Americans Using Paper Currency