CelSius Network, a bankrupt cryptocurrency lender has determined the date to auction their assets following filing for bankruptcy in July.
The Dates for The Auction
A final bid deadline for CelSius is Oct. 17 at 4 p.m. Eastern Time, with an auction possible on Oct. 20 at 10 a.m.
It will be heard via Zoomer on Nov. 1 at 11 am by US Bankruptcy Judge Martin Glenn, according to a filing made Monday with the US Bankruptcy Court for the Southern District of New York.
The company filed for bankruptcy in July, a month after it halted withdrawals and trapped billions in more than a million accounts.
Based on recent court documents, Celsius’s assets were worth only $3.9 billion and its liabilities were more than $6.7 billion, resulting in a $2.8 billion loss on its balance sheet.
The company’s founder and CEO Alex Mashinsky resigned last week amid bankruptcy proceedings, withdrawing $10 million before freezing client withdrawals and ultimately declaring bankruptcy.
FTX CEO to Consider Bidding Celsius’ Assets
Sam Bankman-Fried, founder and CEO of FTX, has disclosed how his company would purchase Celsius.
It comes days after FTX US was reported to be considering a bid for Celsius’ assets after purchasing bankrupt crypto lender Voyager Digital’s assets for $1.3 billion from an auction last week.
“to be clear — in Voyager, our bids are generally determined by fair market price, no discounts; the goal isn’t to make money buying assets at cents on the dollar, it’s to pay $1 on the $1 and get the $1 back to customers. If we were to get involved in Celsius, it would be the same,” tweeted Sam Bankman-Fried.
On the other hand, Celsius’s depositors appear to be more in limbo at this point, although there is a general feeling that the company could auction off its billions of dollars in assets, although other options could also be proposed, including the return of Celsius tokens to customers.
This will greatly influence how Celsius’ bankruptcy proceedings play out in the future, with an independent examination being completed to find out how its finances are performing.