Celsius Network's bankruptcy filing will be overseen by an independent agent, as was the case for Lehman Brothers and Enron in the past.
A group of senior officials of the United States government has filed a petition with the Bankruptcy Court that manages The case of Celsius Network for an independent examiner be appointed to investigate the collapse and bankruptcy from the cryptocurrency lending platform.
This type of independent investigation is common when dealing with cases that raise concerns among affected customers and authorities. In the past, an independent investigator was appointed to investigate the case. Studying the bankruptcy petitions of Enron and Lehman Brothers.
In this regard, the US trusteeship office, which oversees bankruptcy petitions, has noted that Celsius case raises “numerous questions” on its operations and your financial health, as well as the way in which its management allowed it to go into bankruptcy.
An independent investigation could shed light on the major questions that have arisen around the company's finances and would address the “Major transparency issues” in the case of bankruptcy. However, the petition of the trust office must be approved by the judge handling the case.
“There is no real understanding between customers, stakeholders and the public as to the type or actual value of cryptocurrencies held by debtors or where they are located,” the agency notes in its request for an investigation. “An independent examiner is needed here to investigate and report in a clear and understandable manner on the debtors’ business model, their operations, their investments, their loan transactions and the nature of the customers’ accounts for to ensure public confidence in the integrity of bankruptcy systems and to neutralize distrust inherent that creditors and interested parties have in debtors.”
In the past, independent examiners working on the Enron and Lehman Brothers cases were able to To delve into the causes that led both companies to bankruptcyIn the case of Enron, the examiner found that senior managers were directly responsible for the company's financial demise, while at Lehman Brothers they were found to have been playing accounting sleight of hand to conceal the company's bad investments.
Celsius Network loans under scrutiny
The US trust has also pointed out that Celsius Network made a loan to third parties, but did not identify who the lender was, what the collateral was or what type of loan was issued. Furthermore, all this occurred after the lender revealed that it could not return the collateral.
According to the agency, in Mashinsky's statement The types of claims are not described that debtors may have against the lender, nor is it explained why the judicial route has not been resorted to.
Furthermore, Celsius Network customers have lost confidence in the company, something that they have stated in the documents presented in the judicial summary, which, according to the trust, makes the participation of an independent agent necessary.
However, an unofficial Twitter account for Celsius's unsecured creditors has posted a tweet stating opposes the appointment of an independent agent, as this would entail a cost of millions of dollars, at a time when Celsius must reduce expenses to the maximum.
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