A bankruptcy judge expanded the role of Ms. Shoba Pillay, the court-appointed examiner, to include an investigation into Celsius’ handling of CEL tokens and marketing strategy. The examiner’s role might broaden even further to look into how the bankrupt company handled customers’ investments and whether operated like a Ponzi scheme.
A Bankruptcy Judge Orders the Investigation of Whether Celsius Was A Ponzi Scheme
On Tuesday, a New York bankruptcy judge expanded the probe into Celsius Network. The broadening of the investigation came as a response to the creditors’ request to look into whether Celsius operated like a Ponzi scheme. The request was also backed by several state regulators including the Vermont Department of Financial Regulation alleging in September that the start of serious issues can be dated to at least 2020.
Ms. Pillay and the official committee of Celsius creditors were instructed to determine who will head the probe into whether the bankrupt company used newer investments to settle outstanding obligations—whether the firm was operating like a Ponzi scheme. The examiner is also to broaden her probe to include Celius’ marketing practices as well as the company’s handling of the CEL token.
The decision to broaden the examiner’s role allegedly caused some concern among the…
