Cryptocurrency lender Celsius Network has filed an “adversary complaint” against EquitiesFirst Holdings as it seeks to recover assets from the private lender. EquitiesFirst allegedly owes Celsius $439 million, consisting of $361 million in cash and 3,765 BTC as of July 2022. Celsius is seeking injunctive relief and a declaratory judgment in order to recover the money and property owed to them. EquitiesFirst, a long-term asset-backed financing specialist, began offering crypto-collateralized loan services in 2016, and Celsius sought financial assistance from them to support its operations. However, the overcollateralized crypto loan encountered difficulties in 2021. In July, it was revealed that EquitiesFirst was the mysterious debtor to Celsius, owing them $439 million.
Along with the adversary complaint, Celsius also submitted a summons, requiring EquitiesFirst to respond within 35 days. Celsius had filed for Chapter 11 bankruptcy protection in July 2021 after suffering losses in the cryptocurrency Market. The co-founder and former CEO, Alex Mashinsky, was arrested a year later and now faces charges including securities fraud and manipulation of Celsius’ native CEL token. The Federal Trade Commission imposed a $4.7 billion fine on Celsius for allegedly deceiving users, but the judgment was put on hold to incorporate the funds into the bankruptcy proceedings. In August, a judge approved a motion allowing Celsius creditors to vote on a proposed settlement plan. If approved, the plan would involve a consortium called Fahrenheit acquiring Celsius’ assets and reimbursing creditors through the creation of a new company.
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#Celsius #Network #Files #Adversary #Complaint #EquitiesFirst #Recoup #Assets
Along with the adversary complaint, Celsius also submitted a summons, requiring EquitiesFirst to respond within 35 days. Celsius had filed for Chapter 11 bankruptcy protection in July 2021 after suffering losses in the cryptocurrency Market. The co-founder and former CEO, Alex Mashinsky, was arrested a year later and now faces charges including securities fraud and manipulation of Celsius’ native CEL token. The Federal Trade Commission imposed a $4.7 billion fine on Celsius for allegedly deceiving users, but the judgment was put on hold to incorporate the funds into the bankruptcy proceedings. In August, a judge approved a motion allowing Celsius creditors to vote on a proposed settlement plan. If approved, the plan would involve a consortium called Fahrenheit acquiring Celsius’ assets and reimbursing creditors through the creation of a new company.
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#Celsius #Network #Files #Adversary #Complaint #EquitiesFirst #Recoup #Assets
