Authorities in two states oppose Celsius' plan to sell Stablecoin

Authorities in two states oppose Celsius' plan to sell Stablecoin

Regulators say the firm could use the proceeds to restart operations in violation of laws

State regulators in Texas and Vermont have filed a petition in court against plans by cryptocurrency platform Celsius Network to sell its Stablecoin assets. Texas authorities expressed fears in the document that Celsius could resume illegal operations in the state after the sale of assets. Vermont's regulator made similar suggestions.

Celsius, which is currently going through bankruptcy proceedings, requested permission from the court on Sept. 15 to sell its Stablecoin assets to get liquidity to fund its own operations. Such company assets are currently valued at $23 million.

Regulators' objections to Celsius' application are also based on the fact that the company has not indicated what exactly the proceeds from the sale of Stablecoin will be spent on. At the same time, it remains unclear how the spending of these funds could be controlled by the court. The hearing at which Celsius' lawsuit will be accepted or dismissed will take place on Oct. 6.

According to the latest financial report released in August, the difference between the bankrupt company's liabilities and its assets was $2.85 billion. At the same time, it was reported that Celsius would run out of money by October of this year.

In early September it also became known that Celsius had incurred significant losses since the beginning of 2021, but hid this fact from investors, despite the requirements of the law on the disclosure of its financial position.

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