Bankrupt Crypto Lender Celsius Network to Auction Assets on October 20

Beleaguered cryptocurrency lender Celsius Network plans to auction its assets on October 20, following in the footsteps of Voyager Digital, which recently concluded its auction. 

Celsius to Auction Some Assets

According to a recent court document filed at the United States Bankruptcy Court in the Southern District of New York on October 3, the auction will kick off on the slated date after the conclusion of the bidding on October 17. 

The sales hearing is scheduled for November 1 before the Chief Bankruptcy Judge Martin Glenn on Zoom. The court has asked all interested participants to connect to the meeting at 10:am prevailing Eastern Time, noting that the number of participants is expected to be large. 

The latest development in its ongoing bankruptcy proceedings comes a day after the company’s CEO Alex Mashinsky, who resigned last week, reportedly withdrew $10 million from the crypto lender in May before Celsius suspended deposits and withdrawals in June. 

According to the company’s spokesperson, Mashinsky still has about $44 million in digital assets staked in the lending platform, which is currently undergoing insolvency. 

The firm was among the victims of the market crash, which stemmed from the catastrophic failure of the Terra (LUNA) blockchain and the Federal Reserve’s continued rate hike that affected the global financial industry. 

Celsius later filed for Chapter 11 bankruptcy protection, seeking the court’s approval to continue its operations under court surveillance. 

Celsius Potential Bidders

Meanwhile, Bloomberg reported last week that Sam Bankman-Fried, the founder and CEO of crypto exchange FTX, is considering bidding for Celsius assets. The billionaire CEO has been the night knight of the industry, bailing distressed firms hit by the recent bear market wave. 

A person familiar with the matter told Bloomberg that FTX is also raising $1 billion in funding, although the round is yet to be concluded. 

The crypto exchange also recently won a bid to buy Voyager Digital’s assets at its recent auction, valued at around $1.42 billion.

Voyager described the company’s offer as being the best bid over others, including its major rival Binance, investment manager Wave Financial, and trading platform CrossTower.