Cryptocurrency

Celsius shareholders want their own legal representation in bankruptcy case

Zegex

According to the court on Sept. 22, Celsius shareholders have requested official legal representation representing their interest in bankruptcy proceedings. filing.

There is a clear need for this fiduciary statement because, according to the filing, there are only two financial stakeholder groups: retail customers and shareholders.

Shareholders argue that the Unsecured Creditors Committee (UCC) is focused on ensuring retail customers get the most value without considering shareholders. This means that no one adequately represents the interests of shareholders, and any restructuring plan could affect their interests.

Evidence of this is Celsius’ assertion that “UCC is (the) partner and all these cases are about customers.”

A shareholder said:

“We urgently demand trustees with access, standing and resources comparable to those enjoyed by UCC to represent their interests.”

Those shareholders participated in a $750 million funding round months before Celsius filed for bankruptcy.

Shareholders want Celsius to ‘dollarize’ retail crypto holdings

Another notable aspect of the move is that shareholders want Celsius to “dollarize” their customers’ cryptocurrencies.

According to the filing, Celsius’ intent to return customers’ virtual currencies in lieu of assets’ fiat currency violates bankruptcy law and “may adversely affect the recovery of stockholders.” .

If this motion is accepted, the cryptocurrency’s value increase during the proceedings could go to shareholders.

A hearing on the filing is scheduled for October 6, with court appearances and claims proceedings expected to begin on the same day. However, you can still file your appeal until next week.

Celsius IOU Token

A recently leaked audio file suggests that Celsius may be planning to use crypto IOU tokens to pay back its creditors.

in the Leaked audio recording The company’s chief technology officer and co-founder, Nuke Goldstein, said the company plans to wrap each customer’s debt in an IOU token.

another leaked phone Celsius CEO Alex Mashinsky shared the idea with UCC, revealing a positive response.

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