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Celsius Shareholders Ask For Legal Representation In Bankruptcy Proceedings

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The post Celsius Shareholders Ask For Legal Representation In Bankruptcy Proceedings appeared first on Coinpedia Fintech News

In a September 22 court filing, Celsius shareholders pleaded for an official legal representation that would represent their interest in the bankruptcy case. The filing mentions that there is a clear need for this fiduciary representation because of only two economic stakeholder groups — retail customers and equity holders.

The shareholders claim the Unsecured Creditors Committee (UCC) is busy ensuring that retail customers get maximum value without even considering the interests of the equity holders. The shareholders are also expecting Celsius to “dollarize” the crypto holdings of its customers.

As per the filing, Celsius is intending to return customers’ crypto instead of the fiat value of the asset, which is breaching the Bankruptcy Code, and supposedly it could negatively impact the Equity Holders’ recovery. The idea that Celsius might be planning to repay its creditors using crypto IOU tokens came up from a leaked audio file.

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