Regulators from Texas and Vermont have filed a objections to battered crypto lender Celsius’s plans to sell off its stablecoin holdings.
The filings come after a Sept. 15 notice from Celsius’ legal team asking the United States Bankruptcy Court for the Southern District of New York for permission to sell its stablecoin holdings, reportedly worth around $23 million. A hearing to accept or decline the motion will occur on Oct. 6.
However, the move has not gone down well with the Texas State Securities Board, the Texas Department of Banking, and the Vermont Department of Financial Regulation, who filed objections on Sept. 29.
The two Texan regulators in a joint filing outlined that “more than 40 states” are currently investigating Celsius’ pre-bankruptcy activities in relation to potential unregistered securities offerings.
Texas regulators also highlighted a concern that if Celsius sells off its holdings, the firm may resume non-compliant offerings in the state, given that it is still not registered with the Texas SBB. At the same time, the Vermont regulator also highlighted similar concerns in its own objection.
The Celsius bankruptcy case has been highly complicated thus far, given the cloudy nature of the firm’s balance sheet. Earlier this month, the United States Bankruptcy Court of the Southern District of New York granted a motion for Celsius to appoint an independent examiner to investigate aspects of its business.
