Celsius creditor committee says it will investigate conduct of Mashinsky and other insiders

Quick Take

  • The unsecured creditor committee issued its first statement, saying it will “thoroughly investigate” the conduct of Celsius CEO Mashinsky and other insiders.
  • It has appointed a number of legal and restructuring specialists to help recoup funds.

A committee representing unsecured creditors of Celsius Network, the bankrupt crypto lender, issued its first official statement last night.

The group repeatedly singled out Celsius CEO Alex Mashinsky, stating that it intends “to thoroughly investigate the prepetition conduct of Mashinsky and other Celsius insiders, including the problematic asset deployment decisions, prepetition transfers, and other issues.”

Celsius suspended withdrawals on June 12, and a month later filed for Chapter 11 bankruptcy in New York. At that time, the company said it had more than 100,000 creditors.

The Official Committee of Unsecured Creditors was appointed on July 27, according to yesterday’s statement. It is made up of seven individuals and institutional representatives who lent funds through the platform. They are Caroline G. Warren, Thomas DiFiore, ICB Solutions, Christopher Coco, Andrew Yoon, Mark Robinson, and Covario AG.

“The Committee’s goal is to maximize the recoveries of account holders and unsecured creditors,” it said in the statement. “The Committee intends to be a vigorous participant in the Debtors’ bankruptcy and to put the interests of the Debtors’ account holders and unsecured creditors first.”


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The group has hired White & Case, the law firm, as its counsel, as well as restructuring advisor M3 Partners and blockchain consultancy Elementus. It has also appointed Perella Weinberg Partners, an investment bank specializing in restructuring, to advise on “potential transactions” that could help recoup lenders’ funds. Finally, it is in the process of appointing Kroll “to establish a website and call center to provide information regarding the bankruptcy process to account holders and unsecured creditors.”

Potential sales of bitcoin accrued through Celsius’ mining operations and of GK8 — the security firm it acquired for $115 million in November last year — are being explored, according to the committee’s statement. The committee will also investigate “strategic options to reorganize or sell the business (or portions thereof) to maximize value for account holders and unsecured creditors.”

Celsius owes $1.2 billion more than it holds in assets, per a statement made by Mashinsky.

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Ryan Weeks is deals editor at the The Block, focused on fundraising, M&A and institutional trends in the crypto space, among other things. He is particularly interested in investigative work — so please send tips! Ryan previously worked at Financial News, Dow Jones as a fintech correspondent in London. Prior to that, he wrote for several different publications, including Sifted, AltFi and Wired. Beyond journalism, Ryan is a keen reader and writer. He enjoys all things active, especially running, rugby, climbing and tennis.