Celsius creditors' lawyer 'looking into' whether firm was a ponzi scheme

2022/11/02 13:51

A New York bankruptcy judge expanded the scope of the probe in the Celsius Network bankruptcy as the company’s customers demanded investigations into the crypto lender’s business operations, according to a Wall Street Journal report.
At Tuesday’s hearing, Judge Martin Glenn of the U.S. Bankruptcy Court ordered the court-appointed examiner and the official committee of Celsius creditors to settle on who will lead a probe into the firm’s use of customer money.
“We don’t know if Celsius was a Ponzi scheme, but there are flags that came up,“ Greg Pesce, the creditors committee’s lawyer, told WSJ. ”Let me make it clear we’re looking into whether it is. We don’t have an answer to that.”
The examiner, Shoba Pillay, was appointed in September following the U.S. Trustee’s allegations of “significant transparency issues” and “gross mismanagement” regarding Celsius’ handling of the bankruptcy case.

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