Embattled crypto lender Celsius Network has reportedly been given the green light to mine and sell Bitcoin (BTC) in bankruptcy proceedings.
Reuters reports that Martin Glenn, Chief Judge of the US Bankruptcy Court for the Southern District of New York, has cleared Celsius to engage in Bitcoin mining despite concerns surrounding its recent difficulties.
Celsius has previously argued that Bitcoin mining is crucial to its restructuring effort. One of the company’s lawyers, Ross Kwasteniet, expressed optimism that the cryptocurrency lender will make a profit once investments are made for mining.
Although granted permission to mine and sell BTC, Celsius was not permitted to sell its other assets.
Glenn says Celsius was vague about which assets he wants to get rid of and only recently revealed that he includes $210 million in equity and debt investments in other crypto businesses. Payment company Ripple would be interested in buy assets belonging to the company in difficulty.
Glenn’s move comes amid reports claiming that before declaring bankruptcy, Celsius traded hundreds of millions of Bitcoin at a loss when its CEO, Alex Mashinsky, took control of the company’s business strategy.
Celsius and Mashinsky also face other legal issues. The California Department of Financial Protection and Innovation (DFPI) recently released a discontinuance and abstention order citing that the company engaged in deceptive marketing tactics and sold titles not authorized in its jurisdiction.
A committee representing Celsius users is currently conducting a investigation on Mashinsky’s alleged wrongdoing.
Disclaimer: Opinions expressed on The Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and transactions are at your own risk and any loss you may incur is your responsibility. The Daily Hodl does not recommend the buying or selling of cryptocurrencies or digital assets, nor is The Daily Hodl an investment adviser. Please note that The Daily Hodl engages in affiliate marketing.
Featured Image: Shutterstock/pathdoc