US DOJ opposes partial asset recovery for Celsius clients

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The Celsius bankruptcy trustee filed an objection to the crypto lender’s petition for a partial payment of assets to custodial account holders.

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As part of the asset recovery program for customers, Celsius applied to the liquidation commission with a request to unblock and return the funds of some users who kept cryptocurrencies on the platform’s custodial accounts. However, the DOJ’s representative in the Celsius bankruptcy objected to the resumption of withdrawals for a certain category of clients until the independent investigation was fully completed.

“This motion is premature and must be rejected by the court until the report of the expert council is filed. Otherwise, any payment or sale of assets at this stage may inadvertently affect or limit the rights of other creditors,” the trustee wrote in an appeal to the Judicial Liquidation Commission.

He drew the court’s attention that Celsius was attempting “on impulse” to resume withdrawals on behalf of a select group of creditors. According to the trustee, the court has yet to gain a comprehensive view of the company’s crypto assets, as well as examine the relationship between the crypto balance and creditors’ deposits. A spokesman for the Ministry of Justice said that Celsius has not yet provided comprehensive information.

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Earlier, Celsius founder and CEO Alex Mashinsky stepped down amid a flurry of lawsuits and pressure from the Committee of Unsecured Creditors following the company’s bankruptcy.

Source: Bits

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