Celsius bankruptcy examined by an independent examiner

Celsius bankruptcy examined by an independent examiner

The office of the US faithower strives to appoint an independent examiner to examine the insolvency proceedings by the crypto loan Celsius.

according to A Court files On Wednesday the office of the fault of the United States, "one" Lack of transparency ”in connection with the bankruptcy case of the lender.

"In this case, the adding of social media has increased [Celsius’] transparency problems, since there is a lot of information on the Internet, but which is not checked or explained, "the file says. "The result was confusion and fear. An auditor can fix it."

The authority, part of the Ministry of Justice, is responsible for monitoring the management of bankruptcy cases and private trustees in the United States.

A Twitter account that belongs to the official committee of unsecured creditor of Celsius Networks expressed his concerns Thursday, the appointment of a examiner "

"leave @celsiusucc done his work for account holder", tweeted the account and marked the Twitter name of the judicial ministry.

Celsius did not immediately answer a request for comment.

The committee, which was founded at the end of July and represents the Celsius users, consists of five individuals and two bodies. It presented its first official mission statement at the beginning of this month and committed to put the interests of the account holders and unsecured creditors from Celsius in the first place.

Questions of trust and transparency

There is no real understanding between customers, interested parties and the public in relation to the value or the type of crypto held by the lender, argues the office. An independent examiner is "necessary" to examine the activities of Celsius and his credit transactions and to report clearly about it, it said.

"The divergent interests of the various goods, the extreme financial irregularities that have taken place, and the great distrust of [Celsius’] customers, all appoint an independent and unselfish examiner in the best interest of the creditors, shareholders and the bankruptcy mass, "wrote the employees of the trustee office in their files.

The appointment-mandatory for cases of more than $ 5 million under US law-would restore the public's confidence in the integrity of the insolvency system by addressing the "inherent mistrust" of creditors and connected parties, as the court document shows.

"Numerous questions" in the case of the lender based in New Jersey also remain unanswered, said the office, including Celsiuss failed to "adequately secure" their loans, as well as allegations in connection with the offer of non -registered securities.

Celsius applied for insolvency protection in accordance with Chapter 11 in mid -July to "stabilize" his business after the payments had been stopped the month before, where it was "extreme market conditions" as a reason after a partially heated strong decline in cryptocurrency prices due to the collapse of Terra.

The lender had opposed the request of his former lawyers at Akin Gump Strauss Hauer & Feld LLP to register bankruptcy before he gave up on the advice of his new lawyer Kirkland & Ellis LLP.

prospects for customers to retain funds

On Sunday, the company based in New Jersey published its budget for a period of three months and reported that it would be assumed that its net cash flow will reach more than $ 137 million in the negative area by the end of October.

Last month Celsius reported a deficit of $ 2.84 billion due to a total of $ 6.7 billion in token liabilities with around 3.8 billion US dollars, including $ 761 million of its native token.

at its climax, Celsius managed around $ 8 billion in crypto loans with a fortune of around 11.8 billion US dollars 1.7 million users .

"The numbers will change based on what happens in court, but at the moment the explanation looks like it is about $ 50 to 60 cents per dollar for a general Earn account," said insolvency specialist Thomas Braziel further a livestream Wednesday.

"I don't see how you will ever return to a 100 percent repayment of crypto, but I think it is possible that you could make a 100 percent fiat repayment if the market is moving, the mining is going well and you can see some good bids for parts of the company-and you could see some good results," he said.

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The post-Celsius bankruptcy examined by an independent examiner is not a financial advice.