Celsius Network to enter the auction process for bad debt and bankruptcy – Siam Blockchain

Insolvency crypto lending platform Celsius Network has set auction dates accordingly.indictmentto the U.S. Bankruptcy Court for the Southern District of New York on Monday, Oct. 3.

The deadline for Celsius is October 17 at 11 PM, and a debt auction will take place on October 20 at 5:00 PM.

from filing a lawsuit A hearing on the transaction is scheduled for Nov. 1 at 6 p.m., before Federal Bankruptcy Court Judge Martin Glenn, via Zoom, said the document said many participants expected a hearing. this case

Celsius began its bankruptcy process in July, nearly a month after it suspended customer withdrawals and prevented access to billions of dollars in more than 1 million user accounts.

According to the latest court records, Celsius has more than $6.7 billion in commitments. However, the company’s assets are currently only $3.9 billion. which has lost more than $2.8 billion in the past.

Celsius affected by the crypto winter

Celsius is one of the most prominent victims of the bear market entering the cryptocurrency industry this year. Other victims of the bear market include TerraUSD Stablecoin, Three Arrows Capital and Voyager Digital.

Former JPMorgan Chase employee Chris Ferraro has been promoted to chief executive officer after company founder Alex Mashinsky. Recently resigned as CEO after being responsible for millions of dollars in losses. with scandals that conceal problems for investors

However, Sam Bankman-Fried CEO of FTX Helping participants who have had financial difficulties in the market in recent months are also considering a bid for Celsius assets.

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