Celsius bankruptcy: the Federal Trade Commission gets involved
Sensitive information – The Federal Trade Commission could enlarge the circle of stakeholders, who want to have an eye and a right to speak in the Celsius file.
An additional layer of complexity
She wants to be part of it. According to a September 13 filing, Federal Trade Commission attorneys Katherine Aizpuru and Katherine Johnson demand to the judge in charge of supervising the bankruptcy proceedings of Celsius, authorization to join the regulator in this processand to represent it.
In the past, the agency had already taken this type of initiative, when it considered that the bankruptcy procedure exposed sensitive information consumers. For other stakeholders, will managing this information make it easier or more difficult to find solutions and answers in this delicate matter?
In other words, will the involvement of the Federal Trade Commission ultimately benefit creditors, and in particular Celsius’ customers, or will it paradoxically penalize them?
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The Federal Trade Commission and its peers are raising the temperature at Celsius
The FTC is not the only public body, which wishes to have a say in this procedure. In August, the US office in charge of bankruptcy cases – or the Office of the Trustee – have filed a request with the competent court, for the appointment of an independent examiner.
This examiner will be responsible for to provide clear answers to essential questions, which could shed light on the causes of the Celsius disaster: the company’s business model, its investments, etc.
The filing of this request, which apparently wants to put Celsius before its responsibilities, by analyzing all the factors that led to its bankruptcy without being limited to bear markets, came a few days after the publication of an incriminating article against the CEO of Celsius, Alex Mashinsky.
The number 1 of the cryptocurrency lending platform would have taken control of the company’s trading strategy, and would have acted in particular by ignoring the structure in place.
If the interest that various regulators are showing in Celsius seems on paper to be good news for its creditors, each organization has in fact its own mission to carry out. And the actions of some could encroach on those of others. Currently, the sky remains cloudy for the company. Recently, a major shareholder of the company requested recognition of his shares as worthless, and Alex Mashinsky presented the last-ditch plan.
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