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Beleaguered crypto lending firm Celsius along with a creditors group agreed for an investigation by an independent government examiner. They came at this conclusion that it would be good for the firm going through the bankruptcy proceedings. Earlier this summer itself, Celsius went on to file for bankruptcy due to its incapability of running the operations further.
Despite the bankruptcy, the lending firm set down the proposal for the firm to use by the company, allowing them to create revenue in order to continue with the necessary operations. However, last month the office of US Trustee, which falls under the Department of Justice, asked for an investigation on the firm by an independent examiner. The agency argued that the company officials did not disclose the complete information about the financials.
According to the filing of the committee, on Thursday, attorneys for Celsius and the Official Committee of Unsecured Creditors, both the entities, agreed for an independent investigation and appointment of an examiner. But the examiner would have a fixed limit regarding time and cost applying on the investigation. The Trustee’s office also agreed to the conditions. Meanwhile several borrowers of Celsius did not agree and opposed the decision.
In addition to the statements of both the parties, a specific proposed order was also filed. This suggests the scope to stay within the limits in order to investigate crypto holdings of Celsius. This includes the storage of crypto holdings. While it would also investigate the reason behind changing of account offerings by Celsius from Earn to Custody.
Additionally the investigation procedure will also check on procedures of lending platforms for paying different types of taxes along with examining if they are laws compliant. Mining business and relevant tasks would also be added within the investigation.
The proposal also added that any budget and proposal by the examiner would be a matter to seek approval from court. For instance, there is no specific mention of the examiner’s identity in the Agreed Proposed Order. However, he/she would be selected in consultation by the US Trustee and to follow the Committee’s inputs.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
