BlocksInform
Legal counsel for the official Celsius Unsecured Creditors Committee has refuted the recent bid solicitations for the crypto lender's assets that were rejected.
Last week, crypto reporter Tiffany Fong said she had received documents detailing offers on Celsius's crypto assets, which "for the most part, dropped out."
According to Fong, Binance, Bank to the Future, Galaxy Digital, Cumberland DRW, and Novawulf had presented their proposals for the assets of Celsius. The lender gave them up.
According to the reporter, she had access to the submissions in December.
In response to those claims, Gregory Pesce from White & Case LLP, the law firm representing Celsius’ Official Committee of Unsecured Creditors, said during a recent Twitter space that reports of the abandoned bids are “categorically false.”
“This leak is likely only going to reduce creditor recoveries because whether the information is accurate or not, it provides people that are still in the process to whom we’re speaking every with day with information about how things might or might not be unfolding and that reduces the flexibility that the committee has in dealing with these parties to get the best possible outcome,” the attorney said.
Pesce said investigations are under way to identify the source of the misrepresentation. Pesce said investigations are under way to find out the source of the misrepresentation.
The Way Forward
During the Twitter space, the attorney also discussed the “recovery corporation” plan proposed by Celsius’ lawyers to exit bankruptcy and repay creditors. The plan aims to restructure the crypto lender into a publicly traded recovery corporation that could issue a debt token to repay creditors.
Counsel said the plan was still under review. Counsel said it was still on the table.
However, The committee is also in the process of "reducing a number of other specific options" as the sale of Celsius's mining activities and the liquidation of the enterprise or the transfer of cryptocurrency to a third party.
Meanwhile, Shoba Pillay, an independent examiner appointed by the New York Bankruptcy Court, revealed in a recent filing that Celsius misused customer funds for years before its collapse.
