cryptoknowmics.com
The United States Trustee wishes to appoint an examiner to the struggling lender Celsius to create an independent public report that clarifies the firm's corporate operations, investments, transactions, and client accounts. At a hearing on Tuesday, a representative for trustee William Harrington stated that they are planning to hire an examiner to inspect a host of concerns surrounding the insolvent firm. Shara Cornell, the representative, said in a Thursday filing that she could not get further financial data that might shed light on the crypto lender's activities. According to the complaint -
"An independent examiner is necessary here to investigate and report clearly and understandably on the debtors' business model, their operations, their investments, their lending transactions, and the nature of the customer accounts to ensure public confidence in the integrity of the bankruptcy system and to neutralize the inherent distrust creditors and parties in interest have in the debtors."
Celsius Filed for Bankruptcy Under Chapter 11
Celsius filed for bankruptcy under Chapter 11 last month after severe economic uncertainty caused liquidity concerns, compelling the company to cease withdrawals and file for bankruptcy. The petition recognizes its assistance in the Chapter 11 procedure but claims serious "financial irregularities" have occurred in the unusual bankruptcy case, necessitating an investigation by a third party. According to the Department of the Trustee, the investigator should be a separate organization from the creditor committee that represents the interests of creditors and consumers. According to the filing-
"The addition of social media, in this case, has amplified the Debtors' transparency issues because there is a lot of information on the internet, but it is not vetted or explained, thereby leaving hundreds of thousands of customers to form their conclusions based on the missing facts in this case coupled with the information passed around as truth on the internet."