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New York Court rules in favor of Celsius Network to sell mined Bitcoin. More sell pressure?

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TL;DR Breakdown
  • New York judge allows Celsius to mine, and sell Bitcoin.
  • The crypto lender is prohibited from selling equity or debt interests in other cryptocurrency firms.

A New York judge permitted Crypto lender Celsius Network to mine and sell Bitcoin (BTC) while it was in bankruptcy, less than a day after disclosing a three-month cash flow forecast that threatens to completely exhaust all available funds.

During the second day of the case hearing, the Southern District of New York’s Chief Bankruptcy Judge Martin Glenn granted Celsius’ request to continue BTC mining and selling operations in order to restore financial stability.

Glenn, however, expressed reservations about the BTC mining industry’s capacity to make money immediately due to the significant upfront costs associated with setting up mining infrastructure.

Since July 2022, allegations of Celsius Networks’ bankruptcy have put the Company in the crosshairs of United States authorities, putting the savings of many cryptocurrency investors in jeopardy.

Celsius new approval limitations

It is worth noting that, the most recent approval is only limited to mining and selling Bitcoin. The court ordered the Crypto lender to provide information about the assets in advance and prohibited Celsius from selling equity or debt interests in other cryptocurrency firms.

The Company’s attorney reassured investors that the firm will make a profit from investing in mining despite worries that they may run out of money by October. After the Crypto lender made it clear that the Company would only sell the mined Bitcoin for cash, the U.S. Department of Justice and the Texas State Securities Board likewise dropped their opposition to its plans to go into Bitcoin mining.

Additionally, Celsius stated at the hearing that since the petition was filed, BTC prices have increased by 25%. The plan will be finalized during the final hearing on September 1.

This comes a few days after Hodlnaut became the latest crypto lending firm to succumb to the stiff effect of the recent Crypto winter.  The Singapore-based Company stated in a statement on Monday that it has decided to immediately suspend all services “due to the recent market conditions.”

However, an article recently covered by Cryptopolitan stated that the Company had submitted an application to the Singapore High Court on August 13 to be put under judicial administration, a procedure that would prevent any legal claims and procedures from being brought against it by creditors.

Lacton Muriuki

Lacton Muriuki

Lacton is an experienced journalist specializing in blockchain-based technologies, including NFTs and cryptocurrency. He dabbles in daily crypto news rich with well-researched stats. He adds aesthetic appeal, adding a human face to technology.

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