According to a new court filing, Texas state authorities oppose a plan by insolvent crypto lender Celsius Network to liquidate its stablecoin assets to fund continued operations.
The state filed its protest in bankruptcy court on Thursday, stating that Celsius is requesting uncomfortably wide authorisation to sell insufficiently specified assets for similarly unclear reasons.
Celsius filed for bankruptcy in July, and the case is currently proceeding in the US Court of Bankruptcy for the Southern District of New York. According to the most recent filing from the Texas State Securities Board and the Texas Department of Banking, more than 40 state authorities are investigating Celsius’ primary operations. The business has been ordered to suspend all investment activity.
A hearing on the prospective sale of stablecoins is set for October 6th in New York.
The business, whose CEO Alex Mashinksy left last week, now controls 11 distinct types of stablecoin totalling about $23 million, according to a request submitted on September 15th.
Alex Mashinsky Founder and CEO Celsius Network. Image: CoinDesk
Additionally, on Thursday, the US Trustee in the bankruptcy case appointed an independent examiner to probe Celsius’ financial management, which contributed to the company’s bankruptcy filing. This examiner is Shoba Pillay, a partner with the Chicago law firm Jenner and Block and co-chair of its data privacy and cybersecurity practice.