The collapsed and bankrupt crypto lending platform Celsius might lose a “fully reconstruct” intercompany claim as it failed to record transactions between its affiliate companies. The court filing that was submitted on Thursday could burst the cloud of hopes for the company’s revival.
The filing is the response to a Feb. 9 court order from a New York bankruptcy court. It discloses the amount and the different types of potential claims that the company holds against its affiliate companies.
Celsius Network LLC currently holds an approximately $9.1 billion claim against Celsius Network Limited, according to books and records “does not take into account the shortfalls in record keeping”.
In this filing, around 7,000 unrecorded transactions between two entities have been found leading to the bankruptcy filing.
The revelation comes after the earlier filings this week, in which Celsius Network represented a sale plan to the U.S. Bankruptcy Court to choose NovaWulf as the sponsorship.
“Given the dearth of record-keeping, it may not be possible to fully reconstruct the intercompany Claim,” the statement said. “If it were at all possible, it would be a time and cost intensive forensic accounting exercise that would likely require the engagement of a forensic accounting firm to manually reconstruct every intercompany transaction at a significant cost to the Debtors’ estates.”
