Texas protests Celsius’s plan to use stablecoin sales to finance operations

Published on:

Last Updated on September 30, 2022 by Bitfinsider

According to a recent court document, Texas state authorities are objecting to a plan by insolvent cryptocurrency lender Celsius Network to sell off its stablecoin assets to pay for ongoing operations.

Asserting that Celsius is requesting “troublingly broad permission to sell assets insufficiently defined for purposes that are also insufficiently defined,” the state filed its protest in bankruptcy court on Thursday.

The case is still pending in the U.S. Bankruptcy Court for the Southern District of New York after Celsius declared bankruptcy in July. More than 40 state authorities are presently looking into Celsius’ prior operations, and the company has been ordered to stop all investing, according to the most recent filing from the Texas State Securities Board and the Texas Department of Banking. A hearing about the prospective sale of stablecoins is scheduled for October 6 in New York.

According to its Sept 15 request, the company’s CEO Alex Mashinksy whom resigned earlier this week, “currently owns [11] different forms of stablecoin totaling approximately $23 million.”

A separate examiner was appointed by the U.S. Trustee in the bankruptcy case on Thursday to look into the financial management of Celsius that prompted the company to file for bankruptcy. Shoba Pillay, a partner and co-chair of the firm’s data privacy and cybersecurity division in Chicago, is the examiner in question.

Hardware wallets are safe and secure devices that can be used offline. They keep your cryptocurrency offline, making it impossible for you to be hacked. To find out more on the leading hardware wallets, you may view our reviews here: Ledger & Trezor
Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.