- The bankrupt cryptocurrency lender Celsius Network has set dates for the auction of its assets.
- While the so-called “Crypto Winter” has seen many high profile crypto firms collapse, opportunistic investors have also been taking advantage of a dip in prices to score quality assets on the cheap.
Celsius Network has been one of the most high-profile casualties of this year’s crypto-market meltdown that claimed the likes of the TerraUSD stablecoin, hedge fund Three Arrows Capital and lender Voyager Digital.
In June, Celsius froze withdrawals, swaps and transfers on its platform, citing “extreme market conditions” before filing for Chapter 11 bankruptcy protection one month later.
Alex Mashinsky, the embattled founder and former CEO of Celsius Network who resigned as CEO on September 27, himself removed US$10 million from the now-bankrupt crypto lender weeks before Celsius halted customer withdrawals in June.
The bankrupt cryptocurrency lender has set dates for the auction of its assets and will have a final bid deadline of October 17, with an auction, if necessary, on October 20, according to a filing with the U.S/ Bankruptcy Court for the Southern District of New York.
A sale hearing will be held on November 1 and is expected to draw a large number of participants.
In a court filing, Celsius said it had a US$1.2 billion hole in its balance sheet. That document showed that Celsius held US$4.3 billion of assets and US$5.5 billion of liabilities.
While the so-called “Crypto Winter” has seen many high profile crypto firms collapse, opportunistic investors have also been taking advantage of a dip in prices to score quality assets on the cheap.
Whether its ecosystem or users, crypto companies which had until fairly recently attracted eye-watering valuations are now looking increasingly attractive, especially if snapped up for pennies on the dollar.
So far however, most of the buying activity has been limited to well-capitalized firms already in the cryptocurrency industry.
