Hoboken, New Jersey-based Celsius filed for Chapter 11
protection from creditors last July in Manhattan after freezing
customer withdrawals from its platform. It listed a deficit of
$1.19 billion on its balance sheet.
U.S. Bankruptcy Judge Martin Glenn, who is overseeing the
Chapter 11 case, appointed former prosecutor Shoba Pillay as an
independent examiner in September.
She was tasked with investigating accusations by Celsius
customers that the company operated as a Ponzi scheme and also
with reporting on its handling of cryptocurrency deposits.
(Reporting by Rae Wee; Editing by Clarence Fernandez)
SINGAPORE, Jan 31 (Reuters) - The business model that
crypto firm Celsius Network had advertised and sold to its
customers was not the business it actually operated, a
court-ordered examiner report released on Tuesday showed.
The report added that Celsius's stablecoin deficit between
May 28, 2021 and its bankruptcy filing amounted to a
billion-dollar hole in its assets.
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