- In a recent leaked recording, Celsius is attempting to revive after it fell into a financial burden.
- The Southern District of New York bankruptcy judge appointed an independent examiner to examine the firm’s finances.
As the leaked recording stemming from Celsius, Federal Judge appointed the examiner who will review the finances of the bankrupt crypto lender, Celsius. Also, as per the court filing submitted on Thursday, the firm is attempting to sell a stash of stablecoins that is worth around $23M.
The Leaked Recording
In a recent leaked All-hands meeting recording, Celsius wants to attempt a revival plan, while the Committee of Unsecured Creditors (UCC) (connected to the firm’s bankruptcy) does not look in the favor of the idea.
According to the leaked audio, the firm wants to make a new business plan and do the final payment of its debt through the latest revised vertical efforts and products. Additionally, in the so-called revival plan a third-party examiner will oversee the finances of Celsius.
However, the creditors and the UCC filed a petition in the court to involve an independent examiner, along with the petitions for a Trustee. Hence, on September 14, 2022 the judge approved a court order for an examiner.
On the other hand, on September 15, 2022 the UCC released its own investigation into thousands of Celsius-related documents, which shows that the firm is looking to access $23M in stablecoins that it currently holds.
Moreover, the firm is being allowed to sell its occupied mined Bitcoin (BTC,) but its customers insisted that their occupied stablecoins must be “treated differently.” It must be noted that the court filing for Celsius’s undertaking to obtain $23M in stablecoins is intended to supply more liquidity. Furthermore, a court hearing is scheduled on October 6, 2022 for “Permitting the sale of Stablecoin” assets.
Source: https://www.thecoinrepublic.com/2022/09/19/here-is-why-a-examiner-appointed-in-the-celsius-bankruptcy-case/