Celsius investors file for ‘fiduciary’ to advocate for them in bankruptcy case
Quick Take
- Equity holders in bankrupt cypto lending platform Celsius file motion to establish a committee to represent their interests as the court case continues.
- The committee would ensure that the investors are not left behind in the bankrupcy case priorities.
Two investors holding equity in crypto lending platform Celsius filed a request on Thursday for a committee to represent their interests in bankruptcy proceedings.
Growth equity firm WestCap and Quebec’s pension fund Caisse de dépôt et placement du Québec (CDPQ) “urgently require their own fiduciary,” according to their filing.
The filing says the need for a fiduciary is “particularly critical” considering that there are “only two groups of real economic stakeholders – the retail customers and the Equity Holders.”
The two companies are concerned that without such measures, the court case “will be inappropriately and inequitably skewed in favor of the customers to the detriment of the Equity Holders.”
Objections to the motion will be accepted until next week, and a hearing is scheduled to address the filing on Oct. 6 at 10 a.m. EDT. Celsius wrote on its Twitter account that the claims process and court appearance are projected to begin on the same date.
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