After Texas state agencies objected to Celsius Network’s plans to sell off its stablecoin holdings to fund ongoing its ongoing operations, some creditors are now telling the bankrupted firm to back off their stablecoins. The creditors are arguing that the crypto lender has not met their burden to establish which, if any, crypto assets constitute property of their estate.
They believe that until the debtors provide sufficient evidence to establish that they own the stablecoin they are seeking to sell, the firm should not be allowed to sell those assets. The committee of creditors pointed out that Celsius isn’t able to show ownership. The creditors say an alternative would be for the firm to prove an immediate need to sell the stablecoins, but approval should ensure that the affected account holders receive adequate protection.
Moreover, the creditors are seeking to pursue investigations against Celsius’ former CEO Alex Mashinsky, and other key executives. Mashinsky gave up his CEO position after the creditors’ committee called for his removal in September. The firm, on September 15, had asked the court for permission to offload its stablecoin holdings to fund operations.
Celsius’ lawyer Joshua Sussberg said the firm held 11 different types of stablecoins worth around $23 million. He didn’t go into the details about how Celsius acquired the stablecoins. In a filing, the firm stated that any stablecoin held by the debtors’ post-petition activity constitutes property of the debtors’ estate and the proceeds generated by the sale of stablecoin also constitute property of the debtors’ estate. The crypto lender had filed for bankruptcy in July.