Celsius creditors are having a tough time especially after the company filed for Chapter 11 bankruptcy last month. On Monday, Celsius network forecasted that it would see a staggering shortfall of funds by October due to unexplained capital expenditure.
After the company’s customers impacted by the alleged fraud sought Court’s help to get back their money, a New York judge Martin Glenn has allowed Celsius to mine Bitcoin (BTC) and sell its operations to restore financial stability.
Now, with the court’s approval, Celsius can mine and sell Bitcoin during its bankruptcy.
The cash-strapped company is believed to have over 100,000 creditors and 1.7 million customers. As per Celsius’ bankruptcy filing, the crypto lender owes its users approximately $4.7 billion.
Noticeably, chief bankruptcy judge Martin Glenn, Southern District of New York has expressed concerns with respect to the immediate profitability of BTC mining in view of the the high upfront investments required to set up mining infrastructure.
