Martin Glenn is the Chief bankruptcy judge of the Southern District of New York. Recently, he made it to the headlines after he allowed Celsius to run BTC mining and selling. What is more interesting is that the judgement came just within 24 hours after revealing a three-month cash flow forecast that threatens the total exhaustion of funds. However, to some, it might be difficult to trace the peculiarity of the judgement. The peculiarity of the judgement arises from the fact that Martin Glenn allowed BTC mining and selling to Celsius, amidst its bankruptcy.
Celsius Network LLC is a cryptocurrency lending company based in Hoboken, New Jersey. The network operates on a global basis, having offices in four nations. The platform enables its users to deposit cryptocurrencies into the Celsius wallet and could take out loans by pledging their cryptocurrencies as a security.
However, in 2022 reports of bankruptcy emerged about Celsius, as the company paused all transfers and withdrawals sighting “extreme market conditions”. In such a situation, the savings of numerous crypto investors are at risk. In such a scenario comes the judgement of Martin Glenn.
Also read: Bitcoin Mining Hashrate Witnesses a Surge
The Judgement by Martin Glenn
Celsius earlier in the case requested Martin Glenn to grant them permission to run BTC mining and selling. They argued that this would be their way of trying to achieve financial stability. In fact, on the second day of the hearing, Martin Glenn, the chief bankruptcy judge, Southern District of New York, granted the company permission. However, at the same time, Glenn also raised concerns about the instant profitability of BTC mining. This is due to the fact, as Glenn had rightly stated, that setting up BTC mining infrastructure requires heavy investment.
However, it must be remembered that the court has prohibited Celsius from selling equity or debt investments in other crypto companies. Therefore, the permission has only been granted for BTC mining and selling and nothing else.
There is a strong fear that Celsius will run out of money by October. However, even amidst this crisis, the attorney of the company argues that crypto mining will be profitable for the company. Earlier, the U.S. Department of Justice and the Texas State Securities Board had strongly opposed Celsius’ entry into crypto mining.
But now those objections have been withdrawn, as Celsius confirmed that they would sell the mined cryptocurrencies against cash. However, the final hearing is scheduled for the 1st of September. Therefore, all eyes will be on that hearing.