The founder of Hodder Law Firm Sasha Hodder says there needs to be more transparency from Celsius CEO Alex Mashinsky. She highlighted that there also needs to be a list of what creditors are owed. Hodder said that if Mashinsky was being transparent, the Trustee would not have a need to pull in an independent examiner.
The bankrupt company has gotten investors upset. Celsius has been in bankruptcy proceedings since filing Chapter 11 bankruptcy protection in July. The US Trustee’s office, on Thursday, filed with the Bankruptcy Court of the Southern District of New York for an appointment of an independent examiner. The crypto lender said it was going to run out of money by October end. But during a hearing call with creditors, on Friday, Chris Ferraro the Chief Financial Officer said Celsius has or will have enough money to fund operations through the end of the year. He said Celsius could fund operations through maturing loans and savings from its sales and taxes on its Texas-based mining rigs.
However, Hodder pointed out that no one has been able to get any straight information out of Alex Mashinsky about how much the company actually owes certain creditors. Celsius had suspended customer withdrawals in June in an effort to avoid a run on deposits. And by June-end, it asked experts for help to help salvage the company and preserve its assets. Hodder says that if the US Trustee receives approval to assign an independent examiner, the list of creditors may finally be made available. She reiterated the need for more transparency. It should be noted that of the top 50 debtors, only 10 are known.
Furthermore, Hodder believes that because the Trustee is making the request to examine Celsius’ financial operations, things will likely go through. She said the company should also stop spending exorbitant funds every day, fire all the staff, and put everything on hold.