Celsius bankrupt, the crypto market in pieces: the US authorities want answers

More embers to come – Whereas Celsius boss is already on the grillthe company could be forced to respond to other charges in courtfollowing a request from the authorities.

Bears cannot be scapegoats

Celsius may have filed for Chapter 11 bankruptcy protection last July, but the cryptocurrency lending platform and its management will not be able to clear customs easily from their responsibilitiesin this disaster that is embarrassing the company’s customers.

L’Office of the Trusteeor the US office in charge of bankruptcy cases, will not settle for a simple or simplistic explanation, evoking the crash in the price of Bitcoin (BTC)which has returned to the $20,000 level, to justify the bankruptcy.

Authorities asked in a motion filed Aug. 18 in bankruptcy court for the Southern District of New York, the appointment of an independent reviewerwho will be able to provide clear and understandable answers on essential questions such as Celsius’ business model, operations, investments made, etc.

>> Get liquidated and take the market with you? Avoid the Celsius nightmare and rack up your satoshis with Binance (trade link) >>

Incompetence or malice: hot file for Celsius

Celsius pays the bad imagewhich it will unfortunately have succeeded in cultivating in a relatively short time, with its creditors.

The authorities refer to the many messages received from the company’s customers, including the allegations which, even if they do not necessarily correspond to reality, reflect their feeling of mistrust with respect to Celsius.

Creditors and authorities all blame the crypto lending platform for an alleged lack of transparency. In such a tense situation, this perception of vagueness and even opacity in the conduct of business obviously does not work in favor of the company.

The Office of the Trustee thus requires the examiner to consider the charges of ” fraud, dishonesty, incompetence, misconduct, mismanagement or impropriety in the management of affairs which are aimed at Celsius.

To these heavy suspicions which hover over the company, are added the allegations regulators who claim that the platform offered unrecorded titles, without having the appropriate licenses. Moreover, Celsius would display failures in its measures to protect against market volatility.

Celsius must be accountable, the message is a little clearer. The company certainly won’t fix the situation by waving a magic wand, and probably not by mining bitcoin while bankrupt.

Don’t make the same horrible dumpling: familiarize yourself with the exciting world of cryptocurrencies without taking crazy bets and come create an account on Binancethe reference Bitcoin and crypto exchange (commercial link).

Leave a Comment