A committee representing creditors of the Celsius Network, the bankrupt crypto lending platform, issued its first official statement.
The group repeatedly highlighted the CEO of Celsius, Alex Mashinsky, and stated that it intends to thoroughly investigate the behavior of Mashinsky and other Celsius insiders in advance. One would also like to take a close look at the problematic decisions on the provision of assets, transfers in advance and other issues.
Celsius suspended withdrawals on June 12 and filed for Chapter 11 bankruptcy in New York a month later. The company said it had more than 100,000 creditors.
The Official Committee of Unsecured Creditors was named on June 27, according to the statement. This consists of seven individuals and institutional representatives who have lent funds via the platform.
The statement says:
“The aim of the Committee is to maximize the recoveries of account holders and unsecured creditors.”
“The Committee intends to vigorously participate in the bankruptcy of debtors, putting the interests of account holders and unsecured creditors of debtors first.”
The group has hired White &Case law firm as legal advisor, as well as restructuring consultant M3 Partners and blockchain consultancy Elementus. Perella Weinberg Partners, an investment bank specialising in restructuring, has also been appointed to advise on potential transactions that could help to recover lenders’ funds.
A website and a call center will also be set up to provide account holders and unsecured creditors with information about the insolvency proceedings.
Possible sales of Bitcoin, which were incurred by the mining operation of Celsius, are to be investigated, according to the statement of the committee. The Committee will also explore strategic options to reorganize or sell the company, including parts of it, to maximize value for account holders and unsecured creditors.