When it comes to Celsius and all the other bankruptcies that are happening right now with other companies such as Voyager, you have something called a UCC, which stands for the unsecured creditor’s committee, the creditor’s committee is appointed by the courts and it’s usually the people that hold funds on Celsius Network, so it’s in their best interests to get the case settled immediately The US Trustee filed a motion for the appointment of an Examiner on 18 August detailing the reasons for the appointment of an Examiner, the US Trustee includes Credible allegations of incompetence or gross mismanagement: the offering of unregistered securities, failing to obtain proper licenses, failing to hedge against market volatility, and engaging in risky investments.

1) that six state regulators filed various cease and desist orders regarding selling securities – Washington (Sept 2019), New Jersey, Alabama, Texas, and Alabama (all in Sept 2021), and California (Aug 2022).

2) Significant transparency issues:

• (a) how much crypto is held and where it is stored and are accounts comingled.
• (b) no transparency on the change from Earn accounts to Custody accounts and no mention of the “Withhold Accounts”
• (c) details of the loan with unreclaimable collateral in July 2021 (now at $361m in USD and 3,765 BTC), what steps were taken to neutralize collateral loss
• (d) details of $648m repaid loan and returned collateral – what were the terms, who was the counterparty 6)
• (e) $750 intercompany revolver (balance currently at $576m) terms? uses?
• (f) why agree to liquidation of collateral for the Tether loan at a $97m loss within 90 days of filing the petition?
• (g) details of the GK8 acquisition 7)
• (h) no explanation why Sales Uses, and VAT taxes were not paid since 2020 nor why no provisions were made to pay these
• (I) no visibility on the mining business assets – owns 80,850 rigs but only 43,632 are in operation
• (j) no information about costs of the mining business.

Widespread mistrust of the debtors – the need for an independent assessment & Debtors exceeds the unsecured debt limit of $5m which triggers the mandatory appointment of an Examiner (Section 1104 (c)(2) of the Bankruptcy Code)

Lots of crypto users are disappointed and think that Celsius should be liquidated, we will keep readers updated on the latest information on this case