Celsius, a bankruptcy ridden digital asset lending company is dealing with legal trouble amid the crypto downturn. However, its shareholders have now filed a motion to set up a committee in order to get the required representation.
Is Celsius in another trouble?
As per the filings, Shareholders urgently require their own fiduciary in the Celsius bankruptcy proceedings. The Crypto lending firm went on to file for bankruptcy in the month of July when the global crypto market registered a historic collapse. This event also bought down major crypto firms like Voyager Digital and Three Arrows Capital.
The report states that the unsecured creditor’s committee is looking for maximising the value for the customers. Meanwhile, there is no stakeholder who presents the firm on the table which supports the interests of the equity holders.
It mentioned that the committee member will try to make sure that equity holders get equal space with major stakeholders. However, they will act responsibly when debtors abandoned to work in the interests of the equity holders.
Getting away with Ponzi Scheme?
However, the hearing of this matter will happen on October 6. Meanwhile, the Celsius Network recently said that it will soon begin its claiming process. While it hopes to fasten talks on withdrawals on the next hearing on October 7.
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Earlier, Coingape reported that filings reveal that more than 40 US state regulators have decided to get into Celsius bankruptcy case. They are also checking its operation and financial details.
The Vermont Department of Financial Regulation even alleged that Celsius was involved in running Ponzi Scheme.
On the market side, the Celsius token is down by 7% over the past 24 hours. CEL is trading at an average price of $1.52, at the press time. The token got terribly affected by the collapse of the firm. It is down by 81% from its all time of $8.02.
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