Celsius Network Files Complaint Against EquitiesFirst Holdings in Asset Recovery Effort
Summary:
Crypto lender Celsius Network has filed a complaint against EquitiesFirst Holdings in an attempt to recover assets. Celsius is seeking injunctive relief and a declaratory judgment, claiming that EquitiesFirst owes them $439 million. Celsius initially took loans from EquitiesFirst in 2019, but when they tried to retrieve their collateral in 2021, they were unable to recover the full amount. Celsius filed for bankruptcy protection in July 2022 after facing losses in the bear market. Now creditors are voting on a settlement plan proposed by Fahrenheit, which aims to acquire Celsius' assets and reimburse creditors.
Crypto lending platform Celsius Network has taken legal action against EquitiesFirst Holdings, a lending firm, in an attempt to recover its assets. Celsius filed a sealed adversary complaint on September 6, seeking injunctive relief and a declaratory judgment for the recovery of money and property. The complaint names EquitiesFirst and its CEO Alexander Christy as defendants. Celsius also issued a summons on the same day, requesting a response from EquitiesFirst within 35 days. EquitiesFirst reportedly owed Celsius $439 million as of July 2022. Celsius had initially taken loans from EquitiesFirst in 2019 due to a lack of institutional lending options for cryptocurrency companies. However, in July 2021, Celsius sought the return of its collateral but was unable to recover the full amount. By July 2021, Celsius was owed a total of $509 million, which is now slowly being repaid at a rate of $5 million per month. Celsius Network filed for Chapter 11 bankruptcy protection on July 14, 2022, following the downturn in the crypto market. The former CEO, Alex Mashinky, was arrested on July 13, accused of defrauding investors. The Federal Trade Commission issued Celsius with $4.7 billion in fines, although the judgement was suspended for the company's bankruptcy proceedings. Celsius creditors are currently voting on a settlement plan proposed by a consortium called Fahrenheit, which aims to acquire Celsius' assets and reimburse creditors by launching a new company.
Published At
9/7/2023 1:45:18 AM
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