Officials of the U.S. government have asked an independent examiner to be appointed to look into the bankruptcy of Celsius Network.
There are ‘numerous questions’ about the operations of Celsius and its financial health, said the U.S. Trustee office which oversees bankruptcy matters, in a recent court filing.
The filing states that an independent review of the company would answer questions about the company’s finances and address “significant transparency issues” in the bankruptcy case.
The U.S. Trustee said, “There is no real understanding among customers, parties in interest, and the public as to the type or actual value of crypto held by the Debtors or where it is held.”
He further states that an independent examiner is necessary to investigate and report in a manner which is understandable on ‘the Debtors’ business model, their operations, their investments, their lending transactions, and the nature of the customer accounts.’
According to the Trustee, this investigation would ensure public confidence in the integrity of the bankruptcy system and neutralize the inherent distrust creditors and parties in interest have on the Debtors.
The Trustee noted that a third-party loan was taken out by Celsius, but it wasn’t identified who the lender was, what the collateral was or what kind of loan was issued.
According to the filing, “No description of the types of claims the Debtors may have against this lender are made in the Mashinsky Declaration, nor is there an explanation for why legal recourse was not sought. There is also no description of any investigation by the Debtors into its legal recourse.”
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Customers of Celsius do not trust the company and have said so on the record in the filing.
A Twitter account for the unsecured creditors of Celsius seemed to oppose this request of an independent examiner.
