- The investigator will also review the rationale behind the service’s turnaround in April.
- Previously, the US Guardian reported lack of clarity about a few accounts.
Move to Hire an Independent Examiner to Investigate Parts of a Crypto Lender Celsius Operations by the federal court overseeing Celsius’ bankruptcy case.
The United States Bankruptcy Court for the Southern District of New York issued an order Wednesday that says the examiner will examine Celsius’ digital assets, tax payment systems and the current state of its mining company in response to requests for more information.
Important Transparency Issues
The investigator will also review the rationale behind the service’s shift in April that saw some clients move from earning to custodial services and others to “account deductible.”
Previously, the US Guardian stated a lack of clarity about these accounts, as customers were unsure who owns certain accounts and for what purposes. Celsius has sought court to return assets to “custodial clients”, but not to their “earning and borrowing” clients, and thus this distinction may be important.
The trustee in the United States in charge of Celsius’ bankruptcy proceedings first applied for the appointment of an examiner on August 18. The filing mentioned “important transparency issues” regarding Celsius’ operations.
Since the application was submitted, however, BnkToTheFuture CEO Simon Dixon He said that the scope of the examiner’s investigation had been reduced so that the percentile did not exhaust its financial resources.
In addition, he said that Alex Mashinsky, CEO of Celsius Network, will be required to disclose any funds he had withdrawn from the service prior to the freeze. According to the latter ruling, Celsius and the official committee of unsecured creditors must be consulted before any further investigation is launched.
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