According to the Official Committee of Unsecured Creditors, Celsius’ assurances that customer funds were safe were empty and false promises. The unsecured creditors are looking into Alex Mashinsky’s Celsius because the committee wants to investigate the “potential misconduct by Celsius and its insiders”.
The committee representing Celsius account holders and unsecured creditors was appointed by the U.S. Trustee on July 27, according to the committee’s first official statement.
The Committee has retained the international law firm White & Case LLP as counsel, as well as restructuring advisor M3 Partners and blockchain consultant Elementus.
The statement repeatedly singled out Celsius CEO Alex Mashinsky, stating that it intends to “thoroughly investigate the prepetition conduct of Mashinsky and other Celsius insiders, including the problematic asset deployment decisions, prepetition transfers, and other issues.”
It mentioned the bankrupt cryptocurrency firm Celsius withdrawing its motion to hire ex-CFO Rod Bolger in response to Committee input.
The Committee is focusing on objectives such as investigating whether Celsius is effectively safeguarding the assets of their account holders.
It also plans to supervise the Debtors’ (Celsius) business plan and investigate strategic options for reorganizing or selling the business in order to provide an in-kind recovery to account holders.
The Committee is made up of seven members, including institutions and individuals. It plans to file a motion to appoint Kroll Inc. as its independent information agent in order to establish procedures in accordance with the Bankruptcy Code.
Also Read: Celsius’s Former Employees Unveils Internal Issues before Bankruptcy
