State Regulators Object To Celsius' Plan Of Selling Stablecoin Holdings

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Alex Mashinsky; Photo Source: Business 2 Community
As per the Texas regulators' filings, "Texas is extremely concerned by the Debtors' request for an order that allows ambiguously broad authority to sell and/or exchange the assets."

The Texas and Vermont regulators raised concerns over the bankrupt lender's request to sell its $23M worth of stablecoin assets to generate liquidity for its operations.

The Texas State Securities Board and the Texas Department of Banking jointly filed their objections to Celsius' plan. According to them, Celsius failed to provide enough details for the sale of its assets.

They claimed that the crypto lending firm has made problematic decisions as part of its "prepetition practices," citing,

"The Debtors previously sought permission to monetize mined bitcoin, including the ability to not only sell the assets, but permission to hypothecate, assign, invest, use, transfer, or otherwise dispose of mined Bitcoin."

The Vermont Department of Financial Regulation also filed similar objections. It stated that after receiving funds, Celsius could resume its illegal activities.

The Vermont regulators backed up their claims by citing a probe carried out by 40 regulators into Celsius' activities. According to the investigation, Celsius may have committed fraud and market manipulation. They also noted that Celsius is under orders to halt all investment-related operations.

Due to these reasons, the state regulators have requested the court to reject Celsius' request.

Despite the objections, the date for the court hearing of Celsius' request remains unchanged. It is currently scheduled for October 6.

Written by
Ayush Pande
As per the Texas regulators' filings, "Texas is extremely concerned by the Debtors' request for an order that allows ambiguously broad authority to sell and/or exchange the assets."

The Texas and Vermont regulators raised concerns over the bankrupt lender's request to sell its $23M worth of stablecoin assets to generate liquidity for its operations.

The Texas State Securities Board and the Texas Department of Banking jointly filed their objections to Celsius' plan. According to them, Celsius failed to provide enough details for the sale of its assets.

They claimed that the crypto lending firm has made problematic decisions as part of its "prepetition practices," citing,

"The Debtors previously sought permission to monetize mined bitcoin, including the ability to not only sell the assets, but permission to hypothecate, assign, invest, use, transfer, or otherwise dispose of mined Bitcoin."

The Vermont Department of Financial Regulation also filed similar objections. It stated that after receiving funds, Celsius could resume its illegal activities.

The Vermont regulators backed up their claims by citing a probe carried out by 40 regulators into Celsius' activities. According to the investigation, Celsius may have committed fraud and market manipulation. They also noted that Celsius is under orders to halt all investment-related operations.

Due to these reasons, the state regulators have requested the court to reject Celsius' request.

Despite the objections, the date for the court hearing of Celsius' request remains unchanged. It is currently scheduled for October 6.

Written by
Ayush Pande