Sep 23, 2022
Shareholders in Bankrupt Crypto Lender Celsius Seek ‘Fiduciary’
(Bloomberg) -- Shareholders in cryptocurrency lender Celsius Network Ltd. filed a motion to set up a committee to ensure they are adequately represented in the company’s bankruptcy proceedings.
Series B preferred shareholders “urgently require their own fiduciary,” according to the filing Thursday by lawyers for a group of equity owners.
Celsius filed for bankruptcy in July, a high profile casualty of this year’s meltdown in digital assets that also brought down the likes of crypto platform Voyager Digital Holdings Inc. and hedge fund Three Arrows Capital.
Currently, a committee of unsecured creditors is “laser focused on maximizing value for the customers” but “there is no stakeholder presently at the table advocating for the interests of the equity holders,” the filing said.
It added that appointing a committee will ensure equity holders are on equal footing with other major stakeholders, “particularly where the debtors have abandoned any pretext of acting in the interests of the equity holders.”
The hearing on the matter is scheduled for Oct. 6. Earlier this month, Celsius Network in an update on Twitter said it expects to soon begin its claims process and hopes to advance talks on withdrawals at its Oct. 7 hearing.
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