Court filings by Kirklan and Ellis LLP, the legal office representing Celsius, indicated that the insolvent cryptocurrency lender is waiting for massive cash in October’s first week.
The filings show the troubled lending firm would receive nearly $70M on its US dollar loans maturing in the coming month. Details appeared recently, and the markets trust its loans in dollar-tied stablecoins. Celsius plans to use the loan repayment to fund its activities till 2022 end.
Interestingly, Celsius filing revealed earn accounts (promoted as secure and safe) aren’t eligible for withdrawals. Moreover, the company plans to release nearly $50M of the custody account’s $210 million. The difference comes as the firm allows withdrawals from pure custody accounts.
Users Lashing Out
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Clients criticized the lending company for restricting withdrawals to individuals with withhold & custody accounts. Users with ‘earn’ accounts didn’t favor this move.
Some trust that accounts that drew the most revenue for the company (non-custodial) remains notable for the suggested withdrawal facility. The October 6 hearing would have custody account holders voicing their proposal.
Legal experts Simon Dixon and David Adler were in the courtroom on September 1’s Celsius hearing. They observed that the bankruptcy could select an independent analyst for the case.
The court will decide on this appointment during the September 14 hearing. Moreover, the independent examiners might go with the firm’s liquidation. That rejects any projection on restructuring efforts.
Surprisingly, Alder revealed some bold remarks during his ‘Celsius Hearing Summary’ when he highlighted withdrawal prioritization. He also mentioned differentiating account types.
Moreover, Adler said that Celsius’s attorneys attempted to pith the ad-hoc groups against each other. That would remove the attention from Celsius operations and exec Alex Mashinsky.
Highly Needed Cash
The news about the new lump sum comes in time as the company revealed about running out of money. The Budget & Coin report of August 14 projected that the lender would lack funds by October.
Moreover, Celsius would fail to fund its activities. The troubled crypto lender has filed for multiple offers for money injection since revealing its bankruptcy status.
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