Bankrupt Lender Celsius CEO Owes Creditors Transparency, Crypto Lawyer Says
August 20, 2022
2 min
要約
Sasha Hodder, founder of Hodder LawFirm, told CoinDesk TV Friday there needs to be more“transparency” from Celsius CEO AlexMashinsky, including a list of what creditors are owedmoney.firm, which works with bitcoin and cryptoentrepreneurs, is not involved in the bankruptcy proceeding. Creditors “are upset that [Celsius is] burning through the money very quickly,” Hoddersaid. The lender has been in bankruptcy proceedings since filing for Chapter 11 bankruptcy protection inJuly. OnThursday, theU.S. Trustee’s office filed with the Bankruptcy Court of the Southern District of New York seeking the appointment of an independent examiner. Celsius said on Monday it was going to run out of money by the end of October.However, onFriday, during a hearing call withcreditors, Chief Financial Officer Chris Ferraro now says Celsius has or will have enough money to fund operations at least through the end of theyear. Ferraro said the company could fund operations via maturing loans and savings from its sales and taxes on its newly establishedrigs.Mashinsky, who was also on thecall, did not answer any questions.
本文翻訳
The U.S. Trustee overseeing the Celsius Network bankruptcy is right to seek an independent examiner because the crypto lender’s CEO hasn’t been forthright with information. Sasha Hodder, founder of Hodder Law Firm, told CoinDesk TV Friday there needs to be more “transparency” from Celsius CEO Alex Mashinsky, including a list of what creditors are owed money. Hodder’s firm, which works with bitcoin and crypto entrepreneurs, is not involved in the bankruptcy proceeding. Creditors “are upset that [Celsius is] burning through the money very quickly,” Hodder said. The lender has been in bankruptcy proceedings since filing for Chapter 11 bankruptcy protection in July. On Thursday, the U.S. Trustee’s office filed with the Bankruptcy Court of the Southern District of New York seeking the appointment of an independent examiner. Celsius said on Monday it was going to run out of money by the end of October. However, on Friday, during a hearing call with creditors, Chief Financial Officer Chris Ferraro now says Celsius has or will have enough money to fund operations at least through the end of the year. Ferraro said the company could fund operations via maturing loans and savings from its sales and taxes on its newly established Texas-based mining rigs. Mashinsky, who was also on the call, did not answer any questions. If the U.S. Trustee, which is responsible for overseeing bankruptcy matters including fraud, receives approval to assign an independent examiner, it may be likely that a list of what creditors are owed will finally be available, according to Hodder. Some may argue the warning signs were around even before the lender filed for bankruptcy, she said. Back in April, when the “market started to implode” and the company asked its clients to increase their bitcoin (BTC) holdings in the event it would have to use it as collateral, Hodder said, “it was disheartening for everyday investors.” Until financial details are clear, however, Hodder said that Celsius should not only be more transparent, but should “stop spending exorbitant funds every day, fire all the staff [and] put everything on hold.” Back in July, the company spent $40 million, which it primarily used to set up its mining site. By signing up, you will receive emails about CoinDesk product updates, events and marketing and you agree to our terms of services and privacy policy.