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Celsius Creditors Subpoena Equities First Over $439 Million Debt

Celsius creditors subpoena Equities First to uncover details about a $439 million debt. The move comes amid ongoing bankruptcy proceedings and fluctuations in the price of CEL tokens.
Published on 2022-09-30

Celsius Creditors Subpoena Equities First Over $439 Million Debt

Creditors of Celsius, the embattled crypto lending platform, have issued a subpoena against Equities First, a lending firm tied to Celsius' bankruptcy. The subpoena seeks information about the loan agreements between Celsius and Equities First, including details of fund transfers and the reasons behind Equities First’s inability to repay $439 million owed to Celsius.

Background on the Dispute

Alex Mashinsky, Celsius’ former CEO, revealed that Equities First had borrowed money from Celsius but failed to return the collateral when Celsius tried to reclaim its funds. This has left Celsius with a significant shortfall of $439 million, adding to the financial challenges the platform faces during its bankruptcy proceedings.

Regulatory Objections and Asset Sales

Meanwhile, state agencies in Texas have raised objections to Celsius’ proposed plan to sell its stablecoin holdings. A hearing on this matter is scheduled for October 6, 2022, in New York. Additionally, rumors are circulating that Sam Bankman-Fried, CEO of FTX, may bid for Celsius’ assets, further complicating the situation.

CEL Token Price Update

The price of Celsius’ native token, CEL, currently stands at $1.45, reflecting a slight increase of 0.13%. Over the past 24 hours, CEL has traded between $1.43 and $1.48. However, trading volume has dropped by 37.05%, with total volume reaching $5,517,636.

This subpoena and the ongoing legal battles highlight the growing complexity of Celsius’ bankruptcy case, with creditors seeking transparency and recovery of their investments.

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