Friday, December 9, 2022
 

Independent Examiner Necessary in Celsius Case: US Trustee Office

  • U.S Trustee Office requests an independent examiner for Celsius bankruptcy case, the court filing says.
  • This could decide whether or not legal claims can be launched against the company’s management.
  • Creditors and investors need a conflict-free, expert party to investigate Celsius’s finances.

According to a recent court filing, the United States Trustee Office has requested that Celsius be investigated by an independent third party as part of the bankruptcy case. U.S. Trustee William Harrington explained that an examiner could decide whether or not legal claims need to be launched against the management of the company.

The community believes that since the cryptocurrency market is still relatively young, illiquid, and poorly regulated, such an investigation is also required to adequately explain Celsius’ business strategy to the company’s clients.

The filing states:

An independent examiner is necessary here to investigate and report in a clear and understandable way on the Debtors’ business model, their operations, their investments, their lending transactions, and the nature of the customer accounts to ensure public confidence in the integrity of the bankruptcy system and to neutralize the inherent distrust creditors and parties in interest have in the Debtors.

Harrington went on to say that an independent examiner should ascertain the worth of any virtual assets held by the cryptocurrency company as well as the whereabouts of those assets.

According to statements made by government attorneys in the court filing, the absence of transparency has led to widespread uncertainty among the parties in interest as well as the consumers of the debtors.

The filing added that creditors and investors alike require an independent, conflict-free, and experienced party to investigate the financial affairs of the Debtors. This party must be free from the constraints of current management and must be able to serve as a source of information that is transparent, straightforward, and reliable.

  • U.S Trustee Office requests an independent examiner for Celsius bankruptcy case, the court filing says.
  • This could decide whether or not legal claims can be launched against the company’s management.
  • Creditors and investors need a conflict-free, expert party to investigate Celsius’s finances.

According to a recent court filing, the United States Trustee Office has requested that Celsius be investigated by an independent third party as part of the bankruptcy case. U.S. Trustee William Harrington explained that an examiner could decide whether or not legal claims need to be launched against the management of the company.

The community believes that since the cryptocurrency market is still relatively young, illiquid, and poorly regulated, such an investigation is also required to adequately explain Celsius’ business strategy to the company’s clients.

The filing states:

An independent examiner is necessary here to investigate and report in a clear and understandable way on the Debtors’ business model, their operations, their investments, their lending transactions, and the nature of the customer accounts to ensure public confidence in the integrity of the bankruptcy system and to neutralize the inherent distrust creditors and parties in interest have in the Debtors.

Harrington went on to say that an independent examiner should ascertain the worth of any virtual assets held by the cryptocurrency company as well as the whereabouts of those assets.

According to statements made by government attorneys in the court filing, the absence of transparency has led to widespread uncertainty among the parties in interest as well as the consumers of the debtors.

The filing added that creditors and investors alike require an independent, conflict-free, and experienced party to investigate the financial affairs of the Debtors. This party must be free from the constraints of current management and must be able to serve as a source of information that is transparent, straightforward, and reliable.

 

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