A federal judge has granted a motion for the U.S. Trustee’s office to appoint an independent examiner to investigate CelsiusNetwork’s finances and practices in its bankruptcy case. By LizKNapolitano
said in separate filings that they had agreed to the appointment, so long as the examiner's scope was narrowed to limit the cost and time of the investigation. The U.S. Trustee's office agreed to these limitations as well, the committee's filing said.
According to the judge's ruling on Wednesday, once an examiner is approved, he or she will have seven business days to propose a work plan and a budget. The court will then have seven days to approve the plan and budget, and the examiner will then have 60 days to file their report. Celsius initiated bankruptcy proceedings earlier this summer after freezing users withdrawals on its platform in June due to “extreme market conditions”. Trouble began for the firm when spooked retail investors rushed to withdraw their assets from Celsius’ platform, precipitating a bank run-like situation at the exchange, following May’s Terra-Luna crash which plunged bitcoin to a third of its previous all-time high value of almost $69,000.
In its bankruptcy filings, Celsius revealed it owes $4.7 billion to its users. Since then, some 58,000 custody account holders, who lost a combined $150 million, have organized to hold the firm to account and recover their lost assets.
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