Court filings reveal Celsius will run out of money by October
Celsius Network has been heading down a slippery slope since it filed for bankruptcy in July. Embattled crypto lender Celsius Network is on track to run out of money by October, according to the firm’s latest Chapter 11 documents.Filed on Aug. 14 to the U.S. Bankruptcy Court of the Southern District of New York, Celsius highlighted that it is expected to reach negative liquidity by October 2022 to approximately $34 million. The lending platform, which held the trust of many across the world with life savings and retirement funds, was revealed to be in a much worse financial position than....
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The data of thousands of Celsius customers revealed in court also included its executives showing millions withdrawn from the platform in the weeks before it was suspended to the public. Publicly available court documents related to Celsius’ bankruptcy proceedings have revealed data concerning thousands of its customers in a financial disclosure form filed on Oct 5.The document contains over 14,500 pages and while addresses of customers have been redacted, it includes customer names, amounts, types, descriptions and timing of transactions on the platform, along with the United States....
Suspension of withdrawals on Celsius custody contradicts the plain language of the firm's terms of use, a group of disgruntled creditors argued. The bankrupt cryptocurrency lender Celsius is facing more legal issues as disgruntled clients are taking action to recover their funds after the platform froze withdrawals in June.An ad hoc group of 64 custodial account holders at Celsius on Wednesday filed a complaint with the U.S. Bankruptcy Court for the Southern District of New York in order to recover their assets.According to court documents, the creditors are seeking to recover a total of....
The crypto lending firm intends to get the liquidity and support its operations with the funds from the sell-off. Celsius Networks, a crypto lending company that had frozen the withdrawals in June and has been proceeding through Chapter 11 bankruptcy since July, asked the United States Bankruptcy Court for the Southern District of New York for permission to sell its stablecoin holdings. This should let the company generate liquidity to help “fund the Debtors’ operations.”A notice was filed by the Celsius’ legal team from Kirkland & Ellis law firm on Sept. 15, a hearing where the court....
Celsius Network continues to battle with bankruptcy, and as the proceedings have moved forward, there have been some interesting findings in the court filings. The latest of these has been that the company is struggling to fund its day-to-day activities. After withdrawing its motion to hire back its ex-CFO Rod Bolger at $92,000 a month, […]
Core Scientific claims to be losing approximately $53,000 per day to cover the increased electricity tariffs that Celsius refuses to pay. Crypto lender Celsius Network's legal journey has gained another chapter as Bitcoin (BTC) miner Core Scientific accused the company of refusing to pay its bills since filing for Chapter 11 bankruptcy, according to court papers filed on Oct. 19. Core Scientific, which is one of the largest publicly traded crypto companies, claims the default on payments is threatening its financial stability, already hurt by crypto winter and high energy costs. In the....