Celsius has been in the news in recent times. In a new development in the ongoing Celsius Network scandal, a Manhattan bankruptcy judge has appointed an independent examiner to investigate the crypto lending firm.
As per the latest court hearing on this news, U.S. Bankruptcy Judge Michael Wiles has appointed law firm Morgan Lewis & Bockius as an independent examiner, with the mandate to probe Celsius’s $2 million loan agreements and its chief executive officer Alex Mashinsky’s personal dealings.
The creditors hope that this move will help them recover their losses by uncovering relevant information about the company and its operations, which is why they lobbied for the appointment of an examiner. The order reads “The court orders that Christopher J. Naughton of RSM US LLP serve as the independent examiner in this case.
Celsius In Deep Waters
The Order appointing Mr. Naughton contains his full name, address, and contact information.”
In a previous ruling on April 24, U.S. Bankruptcy Court Judge Robert D Goldsmith ruled that he had “serious concerns” about whether Celsus was insolvent when it filed for Chapter 7 bankruptcy protection in March 2019 and said he would appoint an independent examiner to look into financial records from before the filing date if needed.
In what could be one of the most anticipated hearings since Janet Yellen’s confirmation in 2014, Mr Powell is set to give his opinion on whether digital currencies pose a threat to financial stability and how they should be treated by regulators going forward.
He will also likely address issues such as whether bitcoin is money or not and what impact dogecoin might have on the world economy. We are encouraged by this development and look forward to seeing what the examiner comes up with.
It’s important for investors to know that there are consequences for those who violate securities laws, and we hope this court decision will deter other companies from engaging in similar fraudulent activity.