Celsius creditor committee says it will investigate conduct of Mashinsky and other insiders

08/09 05:19

According to TheBlock, a committee representing unsecured creditors of Celsius Network, the bankrupt crypto lender, issued its first official statement last night. The group repeatedly singled out Celsius CEO Alex Mashinsky, stating that it intends “to thoroughly investigate the prepetition conduct of Mashinsky and other Celsius insiders, including the problematic asset deployment decisions, prepetition transfers, and other issues.” Celsius suspended withdrawals on June 12, and a month later filed for Chapter 11 bankruptcy in New York. At that time, the company said it had more than 100,000 creditors. The Official Committee of Unsecured Creditors was appointed on July 27, according to yesterday’s statement. It is made up of seven individuals and institutional representatives who lent funds through the platform. They are Caroline G. Warren, Thomas DiFiore, ICB Solutions, Christopher Coco, Andrew Yoon, Mark Robinson, and Covario AG. “The Committee’s goal is to maximize the recoveries of account holders and unsecured creditors,” it said in the statement. “The Committee intends to be a vigorous participant in the Debtors’ bankruptcy and to put the interests of the Debtors’ account holders and unsecured creditors first.”
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