Federal Trade Commission seeks entry into Celsius bankruptcy case

Quick Take

  • The Federal Trade Commission filed Tuesday to join the bankruptcy proceedings of crypto lender Celsius. 

The Federal Trade Commission filed Tuesday to join the bankruptcy proceedings of crypto lender Celsius. 

According to court documents, FTC attorneys Katherine Aizpuru and Katherine Johnson have asked to represent the commission in the case. Johnson applied to "represent the Federal Trade Commission in the above-referenced jointly administered cases and any related adversary proceedings," according to a filing.

CoinDesk first reported the legal development.

As of press time, the court had not officially greenlit the FTC lawyers' requests. The consumer protection agency has joined other bankruptcy proceedings, like that of an education technology company in 2014, when it believes sensitive consumer information could be exposed as part of the unwinding of the company. The sensitivity around personal data potentially adds another layer of complexity to bankruptcy cases.

Celsius declared bankruptcy in July. Since then, both creditors, as well as American regulatory bodies, have sought to shape the process and outcome. The U.S. government is seeking the appointment of a third-party examiner amid allegations of misleading statements by Celsius. 

 


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