Celsius Network, a leading cryptocurrency lending platform, has taken legal action by filing an “adversary complaint” against EquitiesFirst, a global lender, in order to recover its assets. This move aims to protect Celsius Network’s clients and ensure the return of their funds. The lawsuit demonstrates Celsius Network’s commitment to safeguarding its users’ investments and holding accountable any parties that may have acted against their best interests.
Celsius Network, a bankrupt crypto lender, has filed an “adversary complaint” against EquitiesFirst Holdings in an attempt to recover its assets. EquitiesFirst reportedly owes Celsius $439 million, consisting of $361 million in cash and 3,765 BTC as of July 2022.
Title 1: EquitiesFirst: The ‘Mysterious’ Debtor to Celsius
The complaint, titled “recovery of money/property,” seeks injunctive relief and a declaratory judgment. EquitiesFirst and its CEO, Alexander Christy, are named as defendants in the complaint. EquitiesFirst, founded in 2002, specializes in long-term asset-backed financing and expanded its services to include crypto-collateralized loans in 2016. Celsius sought financial assistance from EquitiesFirst in 2019 to support its operations. However, their overcollateralized crypto loan faced challenges in 2021.
In July of this year, it was revealed that EquitiesFirst was the mysterious debtor owing $439 million to Celsius.
In addition to the filing of the adversary complaint, Celsius also submitted a summons to EquitiesFirst, demanding a response within 35 days.
Title 2: A Year After Bankruptcy
Celsius faced bankruptcy in July 2022 amid a sharp decline in the cryptocurrency market. One year later, the co-founder and former CEO, Alex Mashinsky, was arrested and is now facing charges including securities fraud and manipulation of the company’s native CEL token.
Following the bankruptcy, the Federal Trade Commission imposed a $4.7 billion fine on Celsius for allegedly deceiving users. However, the judgment was temporarily halted to allow the platform to incorporate the funds into its bankruptcy proceedings.
In August, Judge Martin Glenn of the Southern District of New York Bankruptcy Court approved a motion allowing Celsius creditors to vote on a proposed settlement plan. The plan involves a consortium called Fahrenheit acquiring Celsius’ assets and establishing a new company to reimburse the creditors.
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Title 1: EquitiesFirst: The ‘Mysterious’ Debtor to Celsius
The recent filing by Celsius Network reveals EquitiesFirst Holdings as a significant debtor, owing a substantial sum of $439 million. The complaint seeks injunctive relief and a declaratory judgment, indicating Celsius’ determination to recover the money/property it is owed. EquitiesFirst and its CEO, Alexander Christy, are named as defendants in the complaint. EquitiesFirst, a company specializing in long-term asset-backed financing since 2002, entered into the crypto-collateralized loan field in 2016. After encountering challenges with their overcollateralized crypto loan in 2021, Celsius sought financial assistance from EquitiesFirst, leading to the current situation.
EquitiesFirst’s involvement as a debtor to Celsius was disclosed earlier this July, shedding light on the magnitude of the debt. The filed adversary complaint emphasizes the urgency for EquitiesFirst to respond to the accusations and address the matter within the given timeframe. Celsius aims to reach a resolution and recover the assets it is owed.
Title 2: A Year After Bankruptcy
Celsius Network’s journey has been tumultuous following its declaration of bankruptcy in July 2022. The arrest of co-founder and former CEO, Alex Mashinsky, in relation to securities fraud and manipulation of CEL token further shook the troubled company. Recently, the Federal Trade Commission imposed a hefty fine of $4.7 billion on Celsius due to allegations of deceiving its users. However, the judgment has been temporarily halted to accommodate the funds into the bankruptcy proceedings.
In response to the bankruptcy, Judge Martin Glenn of the Southern District of New York Bankruptcy Court approved a motion proposing a settlement plan. The plan involves a consortium named Fahrenheit acquiring Celsius’ assets and establishing a new company to repay the creditors. This development offers a glimmer of hope for creditors and stakeholders involved in the bankruptcy case.
Overall, Celsius Network’s adversary complaint against EquitiesFirst seeks to recover the multimillion-dollar debt owed and move towards resolving the bankruptcy aftermath. With ongoing legal proceedings and potential settlements, the future of Celsius Network and the stakeholders involved remains uncertain.