Three conventional banks connected to the cryptocurrency industry closed down last week. The destiny of cash placed with these banking institutions was the primary worry among crypto players. The Celsius Network reported that all the money in its bankruptcy estate had been secured.
Comfort for crypto creditors
The announcement comforted the creditors of the insolvent crypto lender, who had already seen their assets depleted due to the costly chapter 11 procedures. Celsius has updated its cash management system in the United States Bankruptcy Court for the Southern District of New York.
According to the court petition, the insolvent crypto lender has various bank accounts at Signature Bank and Western Alliance Bancorporation, both of which have been recognized as depositaries by the U.S. Trustee. The lender is moving the monies to other permitted depositaries in accordance with the Trustee’s requirements.
In the document submitted to the court, Celsius and its advisers acknowledged that their money at Signature Bank and Western Alliance is collateralized by at least 115% with four separate depository bonds. This was done to ensure that the monies were kept secure.
Comfort for crypto creditors
According to reports earlier today, Celsius stated on Twitter that they would continue their efforts to maximize the safety of cash and cryptocurrency holdings for the benefit of the estates. They also added that they would provide any additional updates as necessary to the Court and all stakeholders. This response came after they were asked whether the company would continue its efforts to protect the estates’ assets.
We will continue to work to maximize the safety of cash and cryptocurrency holdings for the benefit of the estates and will provide the Court and all stakeholders with any additional updates as necessary.
— Celsius (@CelsiusNetwork) March 14, 2023
Celsius is certain that its request to transfer the cash out of Signature Bank will be fulfilled and that there will be no loss of funds throughout the process. Simon Dixon, a prominent creditor of the insolvent cryptocurrency lender, thinks that even if the onboarding process at banks is challenging, the openness resulting from Celsius’ chapter 11 proceedings will assist with the process.
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