The bankruptcy judge of the US State of New York cryptocurrency company approved the decision to appoint an impartial third party to review Celsius’s financial situation.
Judge to Appoint Independent Investigator in Celsius (CEL) Case
Lawyers from the Department of Justice, securities issuers, and representatives of creditors seeking compensation have insisted on the investigative step.
Some of the creditors instead demanded that a trustee be appointed to start paying off the company’s debts more actively.
Judge Martin Glenn, who presided over the case, said there was a possibility that the scope of the third-party review of the company’s finances could be further expanded.
The U.S. treasury, which moved to appoint an investigator last month, said the case required an impartial investigator due to extreme financial irregularities and distrust of customers.
Meanwhile, the Uninsured Creditors Committee (UCC) is conducting its own investigation into Celsius. During today’s session, it was stated that significant progress has been made with the company and that the company has agreed in writing to cooperate with the investigation.
Company CEO Alex Mashinsky hired his own attorney and began releasing information, including his own withdrawals, from the platform.
According to attorney Gregory Pesce, the UCC will meet with state regulators tomorrow to share the status of their investigations.
The company went bankrupt in July of this year.
Since then, it has been subjected to a serious scrutiny due to fraud allegations from the parties of the process.
*Not investment advice.
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