US Department of Justice Involved in Critical Cryptocurrency Case and Made a Statement!

Cryptocurrency The US Department of Justice wants to block the firm’s attempt to reopen withdrawals for certain customers until an independent investigation is completed.

Celsius made a request earlier this month to return funds to customers in the custody and blocked account program.

US Justice Department Wants to Prevent Celsius from Paying Some Customers

The U.S. Board of Trustees contested this request today, saying that “the claims are premature and should be denied until the Inspector’s Report is filed.”

The following statements were used in the objection:

“The facts required to evaluate these recommendations are those identified as lacking transparency in the Auditor’s Suggestion and that the Auditor must investigate and analyze in the Auditor’s Report.

Any distribution or sale at this stage may inadvertently affect or limit distributions to other creditors in this case.”

Celsius is trying to “recklessly” reopen withdrawals for a group of creditors, while the court has yet to gain a comprehensive understanding of the relationship between the company’s crypto assets and crypto balance sheet and the crypto money invested by creditors, according to the official who temporarily oversees the assets.

In the continuation of the objection, the representative of the US Department of Justice used the following statements:

“Parties cannot assess whether debtors should distribute or sell until it is clear how many creditors the debtors have, to whom the debtors owe what, what the debtors’ assets are, and how their crypto assets are held.”

Before any payments are made, the US trustee is seeking more information on Celsius’ storage and possible confusion with accounts related to crypto assets and why there was a change in account offerings for some clients in April of this year.

*Not investment advice.