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Shareholders in Bankrupt Crypto Lender Celsius Seek New Leadership

Shareholders in cryptocurrency lender Celsius Network Ltd. have filed a motion to set up a committee to ensure their interests are adequately represented in the company's bankruptcy proceedings.

September 23, 2022
3 minutes
minute read

Shareholders in cryptocurrency lender Celsius Network Ltd. have filed a motion to set up a committee to ensure their interests are adequately represented in the company's bankruptcy proceedings.

According to a filing by lawyers for a group of equity owners on Thursday, Series B preferred shareholders urgently require their own fiduciary.

Celsius, a high-profile casualty of this year's meltdown in digital assets, filed for bankruptcy in July. Other notable victims of the crash include crypto platform Voyager Digital Holdings Inc. and hedge fund Three Arrows Capital.

A committee of unsecured creditors is currently focused on maximizing value for customers, but there is no stakeholder advocating for the interests of equity holders, according to a filing.

The court said that appointing a committee will ensure equity holders are treated fairly, “particularly where the debtors have abandoned any pretense of acting in the interests of the equity holders."

The hearing on the matter is scheduled for Oct. 6. Earlier this month, Celsius Network said in an update on Twitter that it expects to soon begin its claims process and hopes to advance talks on withdrawals at its Oct. 7 hearing.

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