Cryptocurrency lender Celsius Network (CEL) is bearing the brunt of the crisis prevailing in the cryptocurrency market. He then filed for bankruptcy on 14 July. To pay off billions of dollars in debt, he decided to mine more bitcoins (BTC) and then sell them. The company is also considering an auction of its platform.
The Celsius platform could be auctioned
A week after declaring that its users’ funds belong to it, Celsius continues to look for ways to recover. According to a tweet by Simon Dixon on July 27, the cryptocurrency lender “requested permission to sell the bitcoins (BTC) generated by mining and auction the custody platform“. It must be said that Celsius had indicated in his bankruptcy file the desire to compensate his creditors with cryptocurrencies obtained from mining.
In this context, the company filed an application for approval for a $ 5 million expense. This sum was to be used for restart the extraction. Pat Nash, attorney for Celsius, said:In a world where the cryptocurrency market is recovering, mining has the potential to be very valuable.“The judge had approved Celsius’ request. But for US regulators, the company’s plan probably wouldn’t work.
Note that an analysis revealed that Celsius would have more than 80,500 mining rigs worth approximately $ 750 million. It turns out that more than half of these platforms are currently functional.
All in all, Celsius hopes mining will help him pay off his customers. Some users are actually threatening company employees with hate messages.
With the collapse of prices this year, Celsius has gone bankrupt. The exchange now owes $ 4.7 billion in cryptocurrency to its users. To repay his creditors, he decided to mine more bitcoins (BTC) and then resell them. Celsius is also considering auctioning its platform.
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Luc José Adjinacou
Far from dulling my enthusiasm, a fruitless investment in a cryptocurrency in 2017 only increased my enthusiasm. I therefore decided to study and understand the blockchain and its multiple uses and to transmit information relating to this ecosystem with my pen.