cryptoknowmics.com
Creditors of the crypto lending firm Celsius have subpoenaed Equities First Holdings (EFH), an institutional investment company embroiled in the bankruptcy of Celsius. The move developed after Alex Mashinsky, Celsius's former chief executive officer, claimed his company had borrowed money from Equities First; when the trouble crypto lending firm tried to repay the loan, Equities First failed to return their collateral. According to Mashinsky, Equities First still owes Celsius $439 million.
Loan Agreement Celsius and EFH
Creditors are interested in knowing about the loan agreements between Celsius and Equities First, any transfers of cash or cryptocurrency between Celsius and the investment firm, and the circumstances surrounding Equities First's inability to repay the $439 million collateral to Celsius. The market downturn caused Celsius to collapse earlier this year due to its inability to repay creditors. The now-bankrupt lending company considered selling its stablecoin assets and creating IOU ("I Owe You") tokens to settle its obligation.
Proposal To Liquidate Stablecoin
State agencies in Texas protested Celsius' proposal to liquidate its stablecoin holdings on Thursday. A hearing regarding the future stablecoin sale is scheduled for October 6 in New York. According to reports, Sam Bankman-Fried, popularly known as SBF, of FTX would make a bid for the assets of the defunct crypto bank.