Express
Crypto Lender Celcius Network Shareholders File to Stake Their Claim to Bankruptcy Compensation
Summary: According to CoinDesk, preferred equity holders of cryptocurrency lender Celcius Network are seeking bankruptcy damages by filing a motion to appoint a Preferred Equity Committee to represent them, and to place them at the forefront of company asset sales, due to believing the bankruptcy process to be overly focused on prioritizing the interests of customers. ...
According to CoinDesk, preferred equity holders of cryptocurrency lender Celcius Network are seeking bankruptcy damages by filing a motion to appoint a Preferred Equity Committee to represent them, and to place them at the forefront of company asset sales, due to believing the bankruptcy process to be overly focused on prioritizing the interests of customers.
The motion also requests that the court caps claims at the U.S. dollar value as of the date of the filing date of the bankruptcy petition, which means that if cryptocurrency prices increase during this period, the benefit goes to the equity holders rather than customers; and if crypto prices fall, customers will be hit.
The action has also led to the rise of another group of claimants, who poured $750 million of funding into the company just months before it went bankrupt.
Author: Katie Lin
Tags: bankruptcy,cryptocurrency lender,shareholders
Link: Crypto Lender Celcius Network Shareholders File to Stake Their Claim to Bankruptcy Compensation [Copy]
