Celsius Approved to Sell Mined Bitcoin, Customer Who Lost 50,000 USDC Insists Her Regulated Stablecoins Should Be Treated Differently – Bitcoin News

by James · September 5, 2022

Celsius Approved to Sell Mined Bitcoin, Customer Who Lost 50,000 USDC Insists Her Regulated Stablecoins Should Be Treated Differently

On August 16, crypto lender Celsius Network was approved by a bankruptcy judge to sell bitcoin the company previously mined to continue funding specific operations. The next day, the company’s lawyer stated that Celsius has been offered a cash injection, but the lawyer did not disclose who offered the funds and how much was presented.

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Celsius Approved to Sell Mined Bitcoin, Lawyer Says Firm Approached Cash Offer, Company’s Mining Has 58,000 Mining Rigs Deployed

A court order in the Southern District of New York signed by Judge Martin Glenn on Wednesday and filed by Deputy Chief Justice Deanna Anderson explains that Celsius has been given the opportunity to sell the bitcoin the company’s mining operations previously mined. In addition to offering crypto lending services, Celsius operated a bitcoin mining operation.

A court document from the company’s lawyer Joshua Sussberg explains that the crypto-lending firm’s mining operations mined $8.7 million worth of bitcoin last month. The document notes that bitcoin sales occurred before the petition date of July 13, 2022, and Sussberg’s letter said Celsius had “approximately 58,000 [mining] rigs deployed.”

Sussberg has also told the court that Celsius has received offers for a cash injection, but has not mentioned the stakeholders or the amount that was offered. The news follows Ripple Labs saying the company was interested in learning about Celsius and the crypto lender’s assets. Ripple’s statement came when the company was asked why it wanted to comment on Celsius’ bankruptcy court filings.

Celsius customer claims Center Consitorium’s built-in safeguards should have prevented her from losing 50,000 USDC

In addition, a flood of letters addressed to Southern District of New York Judge Martin Glenn continues to flood the court’s archives. One customer, retiree Carol Becht, explained in her letter that she held 50,000 usd coins (USDC) on the Celsius platform. After doing some research on USDC’s support and how the Center issues stablecoins, Carol Becht said she couldn’t fathom how her USDC just evaporated. The Celsius client insisted that stablecoin USDC should be treated differently because Center and Circle Financial are regulated and licensed.

“I don’t understand how Celsius USDC can just disappear given the safeguards built into USDC by Centre, unless Celsius falsified information,” the Celsius customer wrote to Judge Glenn. “I do not believe USDC should be treated the same as crypto holdings in Celsius given the above statements,” the letter to the New York judge concludes.

Tags in this story

50,000 USDC, Bankruptcy, Bankruptcy Court, Carol Becht, Cash Injections, Cash Offer, Celsius bitcoin, Celsius crypto lender, Celsius Customer, Celsius Lawyer, Chapter 11 Bankruptcy, Court Filing, Courtroom Clerk Deanna Anderson, Crypto Lender, Insolvency, Joshua Sussberg Judge Martin Glenn, Mined Bitcoin, Mined BTC, reorganization, Ripple, Ripple Labs, Southern District of New York, usd coin, USDC

What do you think about the judge giving Celsius approval to sell mined bitcoin? What do you think about the customer who lost 50,000 USDC? Let us know what you think about this topic in the comments section below.

Jamie Redman

Jamie Redman is the news editor at Bitcoin.com News and a financial technology journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source and decentralized applications. Since September 2015, Redman has written more than 5,700 articles for Bitcoin.com News about the disruptive protocols emerging today.