October 4, 2022

U.S. Justice Department objects to Celsius' plans to continue operations

Celsius Network

During bankruptcy proceedings, cryptocurrency lender Celsius Network LLC asked the court for permission to sell and/or exchange its Stablecoins for dollars in order to generate liquidity and resume some operations. The U.S. Department of Justice didn't like the idea, and they filed a formal objection.

In the letter, officials pointed out that Celsius Network was experiencing financial difficulties back in 2019. There is reason to suspect that the company had been insolvent for years and had lied to investors about its state of affairs.

The DOJ emphasizes the lack of transparency in the bankrupt's financial condition. Therefore, such key decisions as the restart of services cannot be taken into account until an independent inspector's report is drawn up on it.

According to U.S. authorities, by selling Stablecoins, Celsius Network may resume operations in violation of state law. So they want a peer review first. And also to see a clear plan of who the payments of the platform will go to and how they will be distributed.

topmoneysi

About the author

I became a crypto asset owner in 2014, when the industry was in its infancy. Before that, I was working in the classic US and European stock markets. Since then, I have gained extensive experience in both cryptocurrency investing and day trading. I am happy to share with readers my experience with crypto exchanges, DeFi and NFT instruments. 

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