1 year ago
Celsius’ Committee of Unsecured Creditors has filed a motion asking the bankruptcy tribunal to contented a subpoena to EquitiesFirst Holdings (EHF) for failing to repay astir $439 cardinal owed to Celsius Network.
EquitiesFirst is an organization lending level Celsius worked with betwixt October 2019 and February 2021 to enactment its concern done collateralized loans.
Celsius co-founder Alex Mashinsky pledged astir $509 cardinal worthy of collateral to get loans from EquitiesFirst. When Celsius wanted to repay the loans, EquitiesFirst was incapable to instrumentality the afloat collateral.
So far, EquitiesFirst has redeemed astir $70 cardinal and owes astir $439 million. The indebtedness consists of $361 cardinal successful USD and 3,765 BTC (worth $78 million). The crypto lender has an ongoing monthly repayment program of astir $5 million.
Celsius failed to disclose afloat details connected the indebtedness until Financial Times named EquitiesFirst arsenic a Celsius debtor. Consequently, the Creditors’ Committee has asked the tribunal to contented a subpoena to analyse Celsius’ deals with EquitiesFirst.
The Committee is seeking accusation connected each indebtedness agreements betwixt Celsius and EquitiesFirst, transfers of currency oregon cryptocurrency betwixt the parties, and the circumstances surrounding EquitiesFirst’s inability to instrumentality the collateral.
According to the Committee, the subpoena volition assistance it summation amended clarity connected the fiscal affairs of Celsius. It is looking to measurement grounds from some parties, arsenic EquitiesFirst whitethorn person antithetic accusation than Celsius shared.
Equity holders telephone for representation
Since the Celsius bankruptcy process started connected July 13, the Creditors Committee has actively defended the interest of retail investors.
Equity holders person moved to petition the assignment of an authoritative preferred Equity Committee to represent the involvement of Celsius shareholders successful the bankruptcy process.
Meanwhile, Celsius has appointed Chris Ferraro arsenic its Chief Restructuring Officer and interim CEO, pursuing the resignation of Alex Mashinsky.
The station Celsius Creditors moves to recoup $439M done EquitiesFirst subpoena appeared archetypal connected CryptoSlate.
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