June 19, 2024
Celsius Network files 'Adverse Complaint' against EquityFirst to recover assets

Insolvent crypto lender Celsius Network submitted an “adverse complaint” against EquitiesFirst Holdings on Wednesday, according to the confidential adverse complaint.

The move comes as Celsius is trying to recover assets from the private lender, which is reportedly owed $439 million. The loan consists of $361 million in cash and 3,765 BTC through July 2022.

EquitiesFirst: Celsius’ ‘mysterious’ borrower

The filing states that Celsius is seeking injunctive relief and a declaratory judgment relating to “recovery of money/property”, as indicated in the title of the document. The complaint lists EquitiesFirst and its CEO Alexander Christie as defendants.

Founded in 2002, EquitiesFirst “specializes in long-term asset-backed financing” and manages stocks, but launched crypto-collateralized lending services in 2016. Three years later, Celsius sought financial assistance from EquitiesFirst to “support their operations”, but their highly collateralized crypto loan ran into trouble until 2021.

Earlier this July, reports surfaced that revealed the Indianapolis-headquartered private lending platform Celsius was a mysterious debtor, owing the troubled company $439 million.

In addition to filing an adverse complaint, Celsius also served a summons on the same day, stating that EquitiesFirst would submit a resolution or response within a 35-day deadline.

one year after bankruptcy

Celsius emerged as one of the early casualties of seeking Chapter 11 bankruptcy protection in July 2022 amid the massive crash in the cryptocurrency market last year. A year later, co-founder and former CEO, Alex Mashinsky, was arrested and now faces multiple charges. , including securities fraud and manipulation of the company’s native CEL token.

Shortly thereafter, the Federal Trade Commission imposed a hefty $4.7 billion fine on Celsius for allegedly defrauding users, but temporarily stayed the decision to allow the platform to include these funds in its bankruptcy proceedings. was given.

In mid-August, Judge Martin Glenn of the Southern District of New York bankruptcy court approved a motion enabling Celsius creditors to vote on a proposed settlement plan, which, if approved, would be called Fahrenheit. A consortium to be known as will acquire the assets of the troubled lender. and reimbursing creditors through setting up a new company.

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source: cryptopotato.com

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