Martin Glenn, Judge of the US on financial and bankruptcy trials, made a decision on Friday that an examination from a neutral expert must be executed in case of Celsius Network. A preliminary detailed announcement must be submitted of all the financial decisions and regulation of customer personal purchases information made by Celsius higher-up management.
Approximately, by the 15th of November the provisional report must be submitted to the investigation team. This information will be used to figure out the owners of escrow money holders, stock, cryptocurrency owners and what conditions have to be followed by the custodians for them to be able to execute transactions through their personal accounts.
Cryptocurrency corporation investigation
Celsius was considered the first on the list of highly advised crypto-bankers. As it got only positive feedback from investors, lots of people got involved. After the bankruptcy news, they found themselves waiting for compensation for the bankrolls that are temporarily stuck on the servers of the Network.
Shoba Pillay is an employee of a law company with the main headquarters in Chickago. She was appointed by the U.S. Office of the Trustee, a division of the U.S. Department of Justice, to conduct a third-party review of all Celsius’ actions and affairs, financial administration and control over cryptocurrency accounts. Her job is to find out what caused Celcius to go bankrupt this summer.
Dov Kleiner, a law firm Kleinberg Kaplan agent, disclosed to CoinDesk via email that Pillay’s preliminary paper will register the absolutely neutral description of the situation from an independent investigator. The report may also influence possible preferential claims as well as trade discounts.
Experts will also investigate insider trading. According to CoinDesk, Celsius former CEO Alex Masinsky and Daniel Leon, former chief strategy officer Daniel Leon, both recently resigned from their accounts between May and mid-June. In total, $17 million in cryptocurrencies were withdrawn from Celsius, after which Celsius stopped all user payouts.
This week Celsius’ current CTO, Nuke Goldstein, also raised about $13 million, but then deposited most of it into another account. Under US law, insider trading could require bankruptcy protection up to a year in advance.