Simon Dixon, CEO of BankToTheFuture and a regular commentator on the bankruptcy case of crypto lender Celsius, has provided an update on the ongoing court case.
Although the auction is still ongoing, Dixon disclosed that an agreement has been reached between the company and its Committee of Unsecured Creditors to pursue claims of constructive fraudulent conveyance and other similar claims against Celsius’ UK-based arm CNL.
This came after regulatory pressure forced Celsius to move its UK operations to the US, leading to problems such as incomplete documentation and poor record-keeping.
The debtors of the bankrupt crypto lender filed a motion to consolidate the two subsidiaries, LLC and CNL, because of the intermingling of records and assets between the two entities. The Committee of Unsecured Creditors supported this motion, asserting that CNL and LLC were always the same entity, and that the transfer of CNL to LLC was a sham.