Celsius’ bankruptcy judge gives approval for independent examination of the cryptocurrency lender | The Financial Express

Celsius’ bankruptcy judge gives approval for independent examination of the cryptocurrency lender

According to Cointelegraph, through an order from the United States Bankruptcy Court of the Southern District of New York, the order specified that the examiner’s investigation will be supervising Celsius’ digital assets

Celsius’ bankruptcy judge gives approval for independent examination of the cryptocurrency lender
Simon Dixon, CEO, BnkToTheFuture, stated that the scope of the examiner’s investigation was reduced down as the motion was filed initially for Celsius to not be devoid of funds

A federal judge who is overseeing cryptocurrency lender Celsius’ bankruptcy case has given approval for the motion to appoint an independent examiner for investigation of aspects related to Celsius’ business, as reported by Cointelegraph.

According to Cointelegraph, through an order from the United States Bankruptcy Court of the Southern District of New York, the order specified that the examiner’s investigation will be supervising Celsius’ digital assets, tax payment procedures and current scenario of its mining business after calls were made for more transparency. The examiner will also try to find as to why there was an alteration in account offerings for April, which resulted in customers being shifted from the Earn Program to Custody Services while others were moved to a withhold account.

On the basis of information by Cointelegraph, previously, the US trustee mentioned about the lack of transparency around these accounts, with customers being unaware about who holds what account and why. Furthermore, Celsius had asked the court to give its assets back to custody clients but not is earn-and-borrow clients. However, Simon Dixon, CEO, BnkToTheFuture, stated that the scope of the examiner’s investigation was reduced down as the motion was filed initially for Celsius to not be devoid of funds. 

Moreover, Cointelegraph noted that a recent order outlined that the scope of the investigation could be expanded if needed, on account of prior consultation with Celsius and the official committee of unsecured creditors. Celsius would also be required to show all documents deemed necessary for the examiner to perform the investigation though Celsius will have authority to reject the request if required, which would then be decided by courts. On approval of the identity of the examiner, seven business days will be given for drafting of a work plan and a budget. The court will have seven days for providing their approval post which they will 60 days to ensure completion of their investigation.

(With insights from Cointelegraph) 

Also Read: Apollo DAO to shut down vaults present on Terra Classic

Follow us on TwitterFacebookLinkedIn

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.