Bankruptcy Court Approves Celsius’ Timeline for Potential Assets Sale

The end of the bankruptcy proceeding of troubled crypto lender Celsius might just be near as the court has approved its planned sales schedule.

According to the order of the court, it has set December 12 as the deadline for final bids and December 15 as an auction if necessary. It also approved December 22 for a sale hearing for any objections or discussion on the sale order after a winner must have been selected. 

The court also authorized Celsius to pick a stalking horse bidder to prevent low bids if it chooses to and also outlines a layout for the sale compelling the lender to enter a sale order after the approval of the court and its creditors.

As part of the order, the Federal bankruptcy judge will also appoint a customer privacy ombudsman recommended by the government’s representative in the case (the U.S Trustee) to ensure the protection of customer information throughout the sales process.

Earlier in the month, Celsius submitted a pile of documents containing creditors’ information as part of its bankruptcy proceeding. The move kept the creditors at the edge as they dear this might expose them to all sorts of cyber threats.

Following the approval from the court, this would essentially mean the bankruptcy process will be completed before the end of the year even though Celsius can still submit a proposal for a standalone reorganization.

Meanwhile many industry bigwigs including Sam Bankman-Fried are expected to participate in the process to determine the best offer for the firm.

Celsius Bankruptcy Timeline

Recall that Celsius began its bankruptcy proceeding in July after it halted withdrawal on the platform following a liquidity crisis. The firm has reportedly spent over $3 million in legal fees during this bankruptcy proceeding. 

While still undergoing this process, the CEO and founder Alex Mashinsky resigned from his post. An independent examiner was also appointed by the bankruptcy court to question Celsius about its operations after several claims by creditors that the lender was not transparent.

Before running into troubles Celsius had over $12 billion in assets under management.