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Celsius Creditors to Probe CEO, Insiders’ Pre-Bankruptcy Conduct

Aug. 9, 2022, 8:54 PM

Some creditors of Celsius Network LLC plan to investigate the conduct of the bankrupt crypto lender’s insiders and CEO Alex Mashinsky, and will explore options to reorganize or sell at least parts of the business.

Prior to its bankruptcy filing, Celsius didn’t have the internal protocols and risk-management controls “to avoid costly investment decisions,” the committee representing Celsius unsecured creditors told a New York bankruptcy court Monday.

The committee, which is the official voice of customers in the case, said it plans to investigate whether the debtor is properly safeguarding account holders’ assets during the Chapter 11 proceedings.

“The committee ...