Crypto lender Celsius shareholders set up representation committee

SHAREHOLDERS in cryptocurrency lender Celsius Network filed a motion to set up a committee to ensure that they are adequately represented in the company’s bankruptcy proceedings.

Series B preferred shareholders “urgently require their own fiduciary”, said the filing on Thursday (Sep 22) by lawyers for a group of equity owners.

Celsius filed for bankruptcy in July, a high profile casualty of this year’s meltdown in digital assets that also brought down the likes of crypto platform Voyager Digital Holdings and hedge fund Three Arrows Capital.

Currently, a committee of unsecured creditors is “laser focused on maximising value for the customers” but “there is no stakeholder presently at the table advocating for the interests of the equity holders”, the filing said.

It added that appointing a committee will ensure that equity holders are on equal footing with other major stakeholders, “particularly where the debtors have abandoned any pretext of acting in the interests of the equity holders”.

The hearing on the matter is scheduled for Oct 6. Earlier this month, Celsius Network in an update on Twitter said it expects to soon begin its claims process and hopes to advance talks on withdrawals at its Oct 7 hearing. BLOOMBERG