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A court-ordered examiner is expected to release a report on Monday addressing whether bankrupt crypto firm Celsius Network operated as a Ponzi scheme, which could add to the pressure on founder Alex Mashinsky, who is already facing fraud allegations. U.S. Bankruptcy Judge Martin Glenn, who is overseeing the crypto lending platform’s Chapter 11 case, appointed former prosecutor Shoba Pillay as an independent examiner in September, tasking her with investigating Celsius customers’ allegations that the company operated as a Ponzi scheme and reporting on the company’s handling of cryptocurrency deposits.
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Hoboken, New Jersey-based Celsius filed for Chapter 11 protection from creditors last July in Manhattan after freezing customer withdrawals from its platform. It listed a $1.19 billion deficit on its balance sheet.
