federal court in New York has granted an application for the appointment of a special examiner to examine Celsius business dealings. The order stems from the United States Bankruptcy Court, Southern District Of following requests made on August 18 over "significantly transparency issues."
The scope will include inquiries into digital asset holdings and where they're stored; finding out whether there are any utility obligations left outstanding after bankruptcy proceedings end (such as taxes); exploring how much money was made during different times through mining activities- all while staying within certain parameters set forth by law.
The court has ordered that Celsius officers fully cooperate with the appointed examiner and provide all information he needs to conduct an independent investigation into what happened. They cannot stop him from interviewing people or gathering evidence, but they hope this will allow them some remedial measures as well—like giving back money customers were improperly denied during their original inquiry process if there is found enough wrongdoing on behalf of company employees.
The court expects the examiner to file their findings within 60 days and there shall be no public disclosures of this information. Other conditions set out in the order include the right of parties to seek relief to expand the Scope of the Investigation and for the examiner to cooperate with government agencies.
The Celsius saga
Celsius is one of the most talked-about banks in recent weeks as it struggles to get back on its feet. The company suspended withdrawals earlier this summer following an unfortunate series of events that led them down a slippery slope.
Pundits believe that Celsius’ mining business would be instrumental in its quest to find its feet again. The firm's Chief Executive Officer, Alex Mashinsky noted how it can rise from the ashes like Apple and Delta Airlines firms which were previously on brink of bankruptcy but are now thriving thanks partly due their commissions-related transactions with clients who choose not only transparency but also high-quality service for all aspects.
"If the foundation of our business is custody, and our customers are electing to do things like stake somewhere or swap one asset for the other, or take a loan against an asset as collateral, we should have the ability to charge a commission,” said Oren Blonstein, Head of Innovation and Chief Compliance Officer at Celsius Network.