According to a report by the Financial Times on Saturday, the bankrupt cryptocurrency Credit company Celsius Network has been subpoenaed by US federal prosecutors.
The subpoena, an order for someone to appear in court, was issued just days after Celsius Network frozen client accounts by a federal grand jury used by the US Department of Justice in Manhattan in June.
Subpoena Indicates That Cryptocurrency Company Celsius Was Under Major Scrutiny At That Time, Too
The court file stated that the subpoena was issued by a federal grand jury in Manhattan. Federal grand juries are used by Department of Justice prosecutors when conducting criminal investigations and can potentially file indictments.
Details of what the subpoena requested were not disclosed in the October 5 file. The subpoena was included in the list of “regulatory investigation or actions” as a broader statement of the company’s financial affairs.
Celsius said: “We cooperate with all regulatory investigations and regulators are key stakeholders in our restructuring. We do not comment on the specific details of any investigation.”
According to the Financial Times, the bankrupt crypto firm was holding “the savings of hundreds of thousands of customers.”
A Cardano (ADA) investor lost more than $25 million due to Celsius’ shutdown. The investor named “Hirokhado Kohji” owned about 60.9 million ADA tokens before the popular crypto lending company went bankrupt.
As Celsius went through Chapter 11 bankruptcy, it was reported that there were nearly 30,000 pages of court documents containing the financial information of 600,000 user accounts. However, the judge allowed users’ home addresses and emails to be deleted.
According to the Financial Times, Celsius Network has a client asset of $25 billion, while “promising customers the dazzling returns they get by distributing their tokens in digital asset markets.”
According to the Financial Times, Celsius had about $4.3 billion when it filed for bankruptcy in July, while it owed about $5.5 billion.
According to the Financial Times, bankrupt crypto lender Celsius has investigations with several federal agencies, including the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the Federal Trade Commission (FTC).
*Not investment advice.
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