Cryptocurrency

Celsius Creditors moves to recoup $439M through EquitiesFirst subpoena

Zegex

The Celsius Committee of Unsecured Creditors motion It asked the bankruptcy court to issue a subpoena to EquitiesFirst Holdings (EHF) for failing to pay approximately $439 million owed to Celsius Network.

equity first is an institutional lending platform that Celsius has collaborated with to support businesses through secured loans from October 2019 to February 2021.

Celsius co-founder Alex Mashinsky pledged collateral worth about $509 million to get a loan from Equities First. When Celsius wanted to repay the loan, Equities First was unable to return the collateral in full.

To date, EquitiesFirst has redeemed approximately $70 million and owed approximately $439 million. Debt consists of $361 million in USD and 3,765 BTC ($78 million equivalent). Cryptocurrency lenders have ongoing repayment plans of around $5 million per month.

Until Celsius reveals the details of the loan, financial times Named to EquitiesFirst as a debtor of Celsius. As a result, the creditors panel asked the court to issue a subpoena to investigate Celsius and her dealings with EquitiesFirst.

The Commission is seeking information regarding all loan agreements between Celsius and EquitiesFirst, transfers of cash or cryptocurrency between the parties, and the circumstances surrounding EquitiesFirst’s inability to return collateral.

The subpoena will help bring greater clarity to Celsius’ financial matters, according to the commission. We are weighing the evidence.

Shareholders seek representation

Since the Celsius bankruptcy proceedings commenced on July 13, the creditors’ committee has vigorously defended the interests of individual investors.

Shareholders are moving to demand the appointment of an official Preferred Stock Board to represent the interests of Celsius shareholders in the bankruptcy process.

Meanwhile, Celsius has appointed Chris Ferraro as chief restructuring officer and interim CEO following the resignation of Alex Mashinski.

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