Celsius team awaits judge’s approval to sell stablecoins

Crypto Regulation
Celsius team awaits judge’s approval to sell stablecoins

The Celcius team has been discussing their motion to request authorization to sell stablecoin in court this morning. According to the most recent reports, the motion is intended to provide liquidity for their ongoing operations as they work to maximize value for all stakeholders. But the judge has said he will announce his choice in the days to come. Today, Celsius took part in two hearings and continued to progress the conversation with significant parties involved in their litigation on vital issues.

Celsius wins approval to extend exclusivity periods till 2023

Celcius has just paid a legal charge of roughly $5.6 million, according to reports from last month. This insolvent cryptocurrency lending platform hired a group of law firms to help them with their ongoing bankruptcy case. The businesses hired include Kirkland and Elis.

However, Celsius issued a series of Twitter threads today discussing the most recent information on court hearings related to their bankruptcy cases. Celsius is currently concentrating on talking with significant stakeholders about “critical matters” after participating in two sessions. To continue operations and provide liquidity, the company is presently seeking approval for a motion requesting authorization to legalize the sale of stablecoin.

Additionally, according to a tweet from cryptocurrency lender Celsius Network on Tuesday, the Southern District of New York bankruptcy court has given the lender permission to extend the deadline for submitting a restructuring plan. The revised application date for Celsius is February 15, 2023. Additionally, the company will use the extra time to investigate “a proposal for a stand-alone business,” according to the tweet.

If Celsius Network is allowed to sell stablecoins to “supply liquidity for their continuous operations,” the court will likely determine next week.

Court grants Celsius’ plea to pay bonuses to non-executive staff

In an effort to prevent employee churn, bankrupt cryptocurrency lender Celsius Network received court clearance to provide incentives to employees totaling up to US$2.8 million.According to a proposal accepted by US bankruptcy judge Martin Glenn on Monday, the payments would go to the non-executive staff assisting Celsius in keeping the lights on as the company tries to emerge from bankruptcy. Also, according to a deal agreed in court on Monday, Celsius must submit a reorganization plan by February 15.

Since the company declared bankruptcy in July, a lawyer for the cryptocurrency lender claimed in court Celsius staff had left in large numbers. Approximately 170 Celsius employees are still working there, compared to 370 at the beginning of the Chapter 11 process.

Ross Kwasteniet of Kirkland & Ellis remarked during the hearing, “We’re really down to the nub of what we need to continue to function.” According to court documents, most of the “retention payments” won’t be worth more than $75,000. The salaries of people who qualify for the bonuses range from $25,000 to $425,000.

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Ifeanyi Egede

Ifeanyi Egede is an experienced and versatile writer and researcher. He has keen interest in blockchain technology, cryptocurrencies, NFTs, Web3, metaverse, fintech and emerging technologies. He has tons of published works both online and in the print media. He has close to a decade of writing experience. When he is not writing, he spends time with his lovely wife and kids.