In the bankruptcy case of Celsius Network, the United States Trustee Office has filed a motion requesting an independent investigator.
In a court document dated August 18th, it is stated that an independent investigation will shed light on Celsius's financial and operational transparency difficulties.
This investigation must be approved by the judge presiding over the case.
According to the lawsuit, the lack of information over Celsius' activities did not begin with the bankruptcy filing and has been ongoing, as indicated by the unexpected changes in customer account types and substantial consumer misunderstanding regarding the status of individual assets.
"There is no meaningful understanding among customers, interested parties, and the general public on the type or true worth of crypto assets held by the Debtors or where they are held," it says.
An impartial examiner is required to study and report on the debtors' business strategy, operations, investments, loan activities, and type of customer accounts in a clear and intelligible manner.
In addition, it was revealed that Celsius utilized an unnamed third-party loan. It would be in the best interests of Celsius's customers, stockholders, and the company itself for an independent examiner to address the series of operational questions.
According to a source, Celsius CEO Alex Mashinsky began directly supervising trades days prior to his meeting with the United States Federal Reserve.
According to those with knowledge of the issue, he overruled executives and guided individual trades.
The investigation would be the next significant event in the crypto market's history, which is already replete with significant events.
In recent days, a number of other things have occurred, including the judge's permission for the business to mine and sell bitcoin as the bankruptcy case continues.
Celsius has also considered new finance opportunities through reorganization or the sale of the company.
Multiple monetary offers have apparently been made on the company. According to a report, Ripple Labs was reportedly considering acquiring Celsius.
Customers of Celsius are currently awaiting an update on the status of the lawsuit and are hopeful that they will be able to recover their monies. Some are concerned that their payments may not be refunded for years.
