US admin asks examiner to investigate Celsius' 'significant transparency issues'

The trustee overseeing Celsius' bankruptcy case asked an examiner to help shed light on a number of complex issues .

The US trustee in Celsius's bankruptcy proceedings has called for an independent reviewer to be appointed to "untangle" the troubled network's financial affairs and business operations.

In a petition filed Thursday with the U.S. bankruptcy court by William K. Harrington, the U.S. trustee asked an examiner to review allegations of "incompetence or gross mismanagement" as well as " Significant "transparency issues" surrounding Celsius' operations in the bankruptcy filing.

Examiners are appointed by bankruptcy courts to investigate the details of complex cases before them. They are able to present information to the courts from an independent perspective and have been named in other high profile bankruptcy cases such as Lehman Brothers during the subprime mortgage crisis.

According to the motion, the appointment of an examiner would be beneficial to the parties involved, given the complexity of the case, as they could provide information beyond the court's expertise:

"An investigation by an independent reviewer, which would present its findings in a comprehensible manner, is essential to provide the Court, the United States Trustee, creditors, and other interested parties with transparency and clarity of the company structure, practices and debtor liquidity.”

Harrington also mentioned that a reviewer would be able to determine whether legal action should be taken against management as there are allegations of "credible allegations of incompetence or gross mismanagement".

The US trustee also suggested that there are "significant transparency issues" regarding Celsius' business operations.

“The debtors did not provide adequate disclosure regarding their liquidity position, business model, traditional cash flow, or the value of their crypto assets,” Harrington said, adding that the information may then be used to help evaluate any proposed restructuring or sale.

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