The trustee tasked with overseeing Celsius Network’s bankruptcy proceedings asked a federal court judge in New York. Reject Celsius’s latest move to reopen customer withdrawals. and selling a $23 million stablecoin holdings, this is too urgent and not timely.
in the submissionopposeOn Friday, lawyers for the US Trustee Program argued that it should be denied at least until an independent investigator’s report, with Shoba Pillay, a Chicago partner at Jenner & Block law firm Jenner & Block, was appointed investigator on Friday.Thursday
Pillay’s review of Celsius holdings and operations will delve into where and how the company has client funds. Whether the accounts are mixed or not, and why Celsius switched account offerings for some customers since April from the Earn program to a custody service.
The company’s move to reopen withdrawals is only available to customers holding “pure custody assets” that Celsius cannot determine. But the objection claims that distributing funds to clients without understanding the company’s crypto holdings, corporate debt, and transfers between accounts and affiliates could “affect or Inadvertently limiting distribution to other creditors.”
hearing to discuss It is scheduled for 6 Oct.
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