The committee of unsecured Celsius creditors stressed in its motion that the stablecoin sale request “should not be approved at this time.”
that the stablecoin sale request “should not be approved at this time.” The committee believes there’s contested ownership as specific creditors believe the coins are owned by Celsius’ customers. However, the official Celsius terms of service explains that it is “unknown how your digital assets would be treated and what rights you would have to such digital assets in the event that you, Celsius or any third-party custodian became subject to an insolvency case.
The Celsius bankruptcy case has not been smooth and there’s been opposition to the company’s decisions nearly every step of the way. On Aug. 17, however, the court didthe request Celsius made to obtain the company’s bitcoin holdings acquired from the firm’s mining operation. Creditors have written letters to the court and have been pleading with the judge to release the funds held by Celsius back to the customers. As far as stablecoins, one woman who lost 50,000 USDC
that she believes her stablecoin assets should be treated differently during the bankruptcy proceedings.