Celsius clients and investors face a fight for assets
After the bankruptcy of Celsius, the company's clients and investment funds clime for assets.
WestCap Management LLC and Caisse de Depot et Placement du Quebec, major investors, believe they can claim cryptocurrency mining profits and a loan book. Dennis Dunn (Midbank) noted in a court filing:
Privileged investors put large sums in Celsius to create the mining company and acquire GK8. As such, they, not the clients, have a basis to pretend these assets.
Typically, when in bankruptcy, the first to be reimbursed are the creditors, not the owners. In this case, it's the clients. Their attorneys have indicated in court documents the right to assert claims against any legal entity belonging to Celsius.
For their part, the investors claim that they financed companies that had nothing to do with those that held the clients' money.
There is a fight ahead, the outcome of which will be to see how much money the customers left without access to their accounts for several months will receive. As for Celsius, the company is looking for ways to repay its creditors. Specifically, considering a full or partial sale of assets.
In court, the investors have asked the judge to appoint a committee of stockholders, as there are a large number of customers on the creditors' committee, which calls into question the objectivity of the representation of the shareholders' interests.