- They were accused that the split into 2 “subsidiaries” was a fraud
- The merger will speed up the return of investors’ funds
Bankrupt crypto company Celsius agrees to merge its units in the UK and US. It would be their answer to court allegations that the firms shared “fictitiously.”
In 2021, the British regulator ordered Celsius Network Limited to cease operations in the country. After that, they established a limited liability company in Delaware, U.S.A..
And began transferring assets there through a series of financial transactions.
The court documents say that such confusion led to chaos within the company.
In addition, many documents were lost, making it impossible for the liquidators to fully understand the affairs of each subsidiary.
“The reorganization was a sham and a screen.. And the billions of dollars transferred between the two organizations have fraudulent overtones.
Because of the transactions, these amounts must be ignored by a New York court that is trying to recover funds from creditors.”
The investigators stress that ordinary customers were unaware of such nuances and were not fully aware of all the risks.
That is not the case with the Series B investors – they were well aware that the company was not keeping strict enough records.
The liquidators conclude by recommending that the two firms be treated as one in bankruptcy.
Celsius has responded to the charges and filed a petition to consolidate the two companies’ assets and customer claims.. The court will consider this application on July 24.