Celsius shareholder asks for own legal representation in bankruptcy case | The Financial Express

Celsius shareholder asks for own legal representation in bankruptcy case

According to the filing, Celsius’ aim to repay customers’ crypto rather than the asset’s fiat value.

Celsius shareholder asks for own legal representation in bankruptcy case
If this motion is approved, any gain in the value of cryptocurrencies throughout the procedure will almost certainly benefit the equity holders.

According to a September 22 court filing, Celsius stockholders have requested professional legal representation to advocate their interests in the bankruptcy process, as reported by Cryptoslate.

According to the complaint, this fiduciary representation is clearly required because there are only two economic stakeholder groups – retail customers and equity holders.

According to the shareholders, the Unsecured Creditors Committee (UCC) is solely concerned with ensuring that retail customers receive maximum value while disregarding equity investors. It indicates that no one appropriately represents the interests of equity holders, and any restructuring plan may have an impact on their interests, Cryptoslate noted. 

Celsius’ argument that the “UCC is (its) partner, and these cases are all about the customer” demonstrates this. The equity holder said, “Urgently require their fiduciary with the access, standing, and resources equal to those enjoyed by the UCC to represent their interests.” 

Another noteworthy feature of the motion is that the shareholders want Celsius to “dollarise” its customers’ crypto holdings. According to the filing, Celsius’ aim to repay customers’ crypto rather than the asset’s fiat value violates the Bankruptcy Code and “may severely effect the Equity Holders’ recovery.”

If this motion is approved, any gain in the value of cryptocurrencies throughout the procedure will almost certainly benefit the equity holders.

(With insights from Cryptoslate)

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