Connect with us
Active Currencies 14317
Market Cap $2,549,098,141,176.90
Bitcoin Share 51.65%
24h Market Cap Change $0.37

Celsius: Can this latest motion offer CEL investors some much-need respite

2min Read

Share this article

The U.S Bankruptcy Court of the Southern District of New York approved Celsius’ Network’s latest motion. This motion stood with regards to setting a deadline for the filing of proofs of claim by the troubled creditors. 

The date has been set

According to court filings, creditors of Celsius have until 5 pm EST,  3 January 2023 to file any claims. This covers all persons and entities, including individuals, partnerships, corporations, joint ventures and trusts. 

According to Celsius’ official Twitter page, creditors who don’t have an issue with the Celsius’ scheduling of their claims, do not have to submit proof of claim. Furthermore, the next hearing is scheduled for 5 December. During this session, the judge will hear matters related to custody and withhold accounts. 

 

Allegations made by independent examiner

The court’s order for the filing came after allegations made by the court appointed examiner regarding Celsius’ poor financial management. Furthermore, examiner Shobha Pillay, a partner at Jenner & Block, released an interim report on 19 November. 

Additionally, the 300 page document outlined how the bankrupt crypto lender blurred the line between assets related to withhold accounts and the main accounts.

No effort was made to segregate or separately identify any assets associated with the Withhold accounts, which were commingled in the Main wallets.” Pillay said in her report.  

According to the examiner, the failure to segregate the above mentioned assets resulted in confusion regarding the ownership of assets amid the bankruptcy proceedings. Furthermore, Pillay shed light on the lender’s business in the run up to the suspension of withdrawals on 12 June. The suspension was reportedly a result of the underfunding of Celsius’ custody wallets. 

Interestingly, the crypto lender did not start tracking its assets and liabilities until May 2021. This balance sheet was more of an ad hoc account of the firm’s assets and liabilities. These were tracked on a Google Sheets workbook dubbed “Freeze Report”. 

Celsius’ new CEO gives insights into current operations

The latest bankruptcy hearing held on 15 November saw Celsius’ new CEO and chief restructuring officer Chris Ferraro briefing the judge about the firm’s business operations. 

Ferraro revealed that the firm had 37,000 mining rigs at the Core Scientific facility, along with 3000 rigs at the Midland site, Texas. The new CEO stated that Celsius was cash flow positive with margins of about 20%. 

Share

Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.