Celsius’s U.S. trustee handling bankruptcy proceedings has called on investigators to untangle the network’s financial and business problems.
In a petition on August 18 by William K. Harrington filed with the U.S. Bankruptcy Court, the U.S. Trustee asked an examiner to look into allegations of incompetence or mismanagement as well as transparency issues surrounding Celsius levels after bankruptcy.
Under this proposal, the appointment of an assessor would benefit the parties involved due to the complexity of the case, as they could provide information beyond the court’s professional capacity.
Harrington also mentioned that an assessor would be able to determine whether to bring legal claims against management, as there are claims of credible allegations of incompetence or mismanagement. The debtor did not provide sufficient information regarding their liquidity position, business model, traditional cash flow, or the value of their crypto assets, Harrington said.
Not all stakeholders supported the inspection request, with the Celsius Official Committee of Unsecured Creditors citing the cost of this.
@CelsiusUcc is concerned about the effort to interject an outside “examiner” into @CelsiusNetwork bankruptcy case. It will run up millions in costs when CEL should cut costs. Let @CelsiusUcc do its job for account holders @TheJusticeDept
— Celsius Official Committee of Unsecured Creditors (@CelsiusUcc) August 18, 2022
However, experts not directly involved in the case such as Bankruptcy Partner at McCarter &English David Adler agree that it is necessary.
— David Adler (@DavidJAdler1991) August 18, 2022