- Celsius received offers of additional funds to assist in funding its restructuring process.
- Celsius filed for chapter 11 bankruptcy last month after freezing withdrawals.
- The CEO of the company has recently been accused of taking control of Celsius’s trading strategy.
According to a recent report by Bloomberg, a lawyer for the insolvent cryptocurrency lender Celsius Network said on Tuesday that the company has received many offers of additional funds to support its restructuring process.
The lawyer for Celsius, Josh Sussberg, did not, however, disclose the number of the offers. According to Sussberg, making rapid progress on this matter is “mission critical” for Celsius. After putting a stop to user withdrawals in June and then placing an embargo on them in July, Celsius resorted to filing for bankruptcy protection last month. The corporation is presently consulting with bankruptcy attorneys to investigate its potential restructuring options.
According to financial projections included in a court filing on Monday, the business will be out of cash by October and possesses $2.8 billion less in cryptocurrency than it owes to creditors.
In related developments, Alex Mashinsky, who is the founder and CEO of Celsius Network, was reportedly in control of the trading strategy for the firm, as stated in a recent report that was released on Tuesday.
According to the story, which cites many persons with knowledge of the situation, Mashinsky allegedly sold millions of dollars worth of bitcoin in expectation of purchasing bitcoin at a low price. Except that after the CEO reportedly made this wager, bitcoin markets went in the other direction, and the most valuable cryptocurrency asset racked up considerable profits.
Furthermore, it was shown in a document that was submitted before the hearing that Celsius mined bitcoins in July worth a total of $8.7 million; nevertheless, the company’s operating and capital expenditures surpass that amount.