Judge Greenlights Independent Examiner In Celsius' Bankruptcy Case

According to a decision made by U.S. bankruptcy judge Martin Glenn on Wednesday, the independent examiner will have to look into several things, including Celsius' cryptocurrency holdings, the reasons why some customers' accounts were switched from the Earn Program to the Custody Service while others were put into a "Withhold Account," the processes used by Celsius to pay taxes, and the current state of the utility obligations associated with its mining operation.

Role Of Independent Examiner

Last week, Celsius and its few creditors agreed to have an independent government examiner investigate the company as it moves through the bankruptcy process. The U.S. Trustee's office, a Department of Justice authorized to supervise bankruptcies, submitted a request in August arguing that the company's management had not been honest about its financials.

Despite opposition from some of Celsius's debtors, the Official Committee of Unsecured Creditors and Celsius' lawyers stated in separate documents that they had approved the appointment as long as the examiner's scope was constrained to reduce the expense and duration of the inquiry. The committee's submission said that the U.S. Trustee's office approved these constraints.

The judge ruled on Wednesday that if an examiner is appointed, they have seven working days to provide a work plan and budget. The court must approve the plan and budget within seven days, after which the examiner has 60 days to provide their findings.