Celsius Network Ltd., a bankrupt and troubled cryptocurrency lender, has announced the dates for the auction of its assets.
Based According to a filing made with the US Bankruptcy Court, the deadline for the final bid was set for October 17. However, it may be extended to October 20 if necessary.
The filing was completed:
“A sale hearing will be held on Nov. 1 at 11 a.m. before Chief US Bankruptcy Judge Martin Glenn via Zoom.”
Celsius revealed recently that it did not intend to ask its debtors for repayment of outstanding loans in its Chapter 11 bankruptcy proceedings. Blockchain.News reported.
Celsius was established in 2017 and provided interest-bearing products to crypto owners who deposited funds. The returns were as high at 18.6% annually. The firm would then lend to its customers. cryptocurrencies To make profits.
The firm was exposed to more risk than it could take, and the rain started to pour down. According According to a Wall Street Journal Report (WSJ). Celsius had $19 billion in total assets, but only $1 billion equity.
The WSJ made the analogy that the company’s Asset-to-Equity ratio was more than double the average for all the North American banks in the S&P 1500 Composite index, which is close to 9:1.
Therefore, Celsius has been one of the significant crypto players that have gone down the drain amid this year’s market meltdown. Other crypto lenders Voyager Digital Ltd., and Three Arrows Capital are also included.
The native tokens of Terraform Labs, Luna, and UST stablecoin, have also crashed with the company’s founder Do Kwon still at large despite making Claim He isn’t hiding.