Key Takeaways:
- A US judge has granted Celsius Network permission to mine and sell Bitcoin (BTC)
- The crypto lending firm filed for bankruptcy in July
- CEL, the native token of the network, has rallied regardless
YEREVAN (CoinChapter.com) — Bankrupt cryptocurrency lender Celsius Network has received much-needed relief from the U.S. judicial system. A New York judge has allowed the company to mine and sell Bitcoin (BTC) in the market.
According to reports, Celsius Network had filed an appeal in the Southern District of New York, seeking permission to run mining operations. As its legal team argued, the operation’s purpose is to help the company become financially stable.
Despite the objection of the U.S. Department of Justice and some creditors, chief bankruptcy judge Martin Glenn saw merit in the case.
Celsius Network has come under the scanner of authorities since July 2022 following reports of possible bankruptcy. Several investors lost their life savings as a result. Now, the company is trying to recoup some of the funds to pay them back.
However, the judge clarified that Celsius Network cannot sell equity or debt investments in other crypto companies. Moreover, he mandated the crypto lending firm to reveal information about its assets.
As CoinChapter earlier reported that, Celsius halted all user withdrawals in June, citing “extreme market conditions.”
According to a court filing, Celsius Network mined 432.30 Bitcoin (BTC) using 58,000 rigs. That amounts to over $8.7 million as per July’s prices.
Celsius Network has declared it will run out of cash by October 2022. The firm expects its cash reserves to decline from over $129 million in August to a little over $37 million in October.
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Celsius (CEL) sheds 50% after an impressive rally
According to a recent report by CoinChapter, CEL, the native token of Celsius Network put up an impressive rally in recent weeks. Despite the bankruptcy filing, it spiked 5000% in two months.
Since the beginning of August 2022 alone, CEL’s price has rallied around 400%.
After reaching a midday high of $4.63 on August 15, the token tanked over 50% in the subsequent two days to go as low as $2.16.
However, while the rest of the Altcoin market remained relatively calm, CEL printed two green candles in a row, regaining over 30% of its lost value to get to the $3.14 mark.
At the time of writing, CEL trades for $2.68, according to data available on CoinMarketCap. Meanwhile, with a $2.85 billion debt looming on the company, all eyes will be on Celsius Network in the coming weeks.
