The Block: Celsius sets dates for asset auction following bankruptcy

Celsius Network has set a timeline for the auction of its assets. The bankrupt cryptocurrency lender will have a final bid deadline of Oct. 17 at 4 p.m. Eastern Time — with an auction, if necessary, on Oct. 20 at 10 a.m. ET. A sale hearing will be held on Nov. 1 at 11 a.m. ET before Chief U.S. Bankruptcy Judge Martin Glenn via Zoomer, according to a filing with the U.S. Bankruptcy Court for the Southern District of New York dated Monday.

Celsius filed for bankruptcy in July — roughly a month after halting client withdrawals and trapping billions of dollars across more than a million accounts. Recent court documents showed that Celsius's liabilities were more than $6.7 billion and its assets were worth only around $3.9 billion, resulting in a balance sheet hole of $2.8 billion.

Amid the bankruptcy proceedings, Celsius founder and CEO Alex Mashinsky resigned last week. Mashinsky reportedly withdrew $10 million before the company froze client withdrawals and ultimately declared bankruptcy.

A large number of participants is expected to attend the sale hearing of Celsius, per Monday's court filing. It remains to be seen who emerges as the highest and best bid for the firm's assets.

FTX CEO Sam Bankman-Fried is reportedly considering bidding on Celsius's assets. Last week, FTX's U.S. unit won an auction for bankrupt crypto firm Voyager Digital's assets, with a bid coming in at about $1.4 billion.

© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.