Celsius' creditor committee launches investigation into the platform's CEO and insiders

The purpose of the committee is to maximize recovery for the company's customers and to explore options for restructuring or selling the business

09.08.2022 - 14:40

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What’s new? On August 8, the committee representing the interests of unsecured creditors of the bankrupt Celsius Network's lending platform issued its first official statement. According to the document, the group intends to investigate “the prepetition conduct of Mashinsky and other Celsius insiders.” The committee's goal is to maximize recovery for account holders and unsecured creditors and to explore options for restructuring or selling the business, the statement said.

The committee's statement

What else does the statement say? The committee was reportedly formed on July 27. It was made up of seven individuals and organizations that made loans through Celsius: Caroline G. Warren, Thomas DiFiore, ICB Solutions, Christopher Coco, Andrew Yoon, Mark Robinson and Covario AG.

The committee has brought in the blockchain consulting firm Elementus to investigate, M3 Partners will serve as restructuring advisors, and White & Case staff will serve as legal counsel. The group has also hired employees from investment bank Perella Weinberg Partners to advise on potential deals that could help recover money from creditors. The committee plans to file a motion to appoint Kroll Inc. as its independent information agent to establish procedures under federal bankruptcy law.

In addition, the committee is exploring the possibility of selling the BTC accumulated from Celsius' mining activities and security company GK8, which the platform bought for $115 million last November.

To find out what led to the collapse of Celsius, one of the largest cryptocurrency lenders, see GetBlock Magazine's article.

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